Alibaba (BABA) to invest over $52 billion in AI and cloud infrastructure over next three years. (00:24) Prosus (PROSY) to acquire Just Eat Takeaway.com (JTKWY) for €4.1B in all-cash deal. (01:41) Shein's 2024 profit dropped nearly 40%: report. (02:35)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Monday: HE, EQX, and moreBybit hack: $1.5B stolen from ethereum wallet in largest ever crypto heistElon Musk’s DOGE laying off workers at the auto safety agency overseeing Tesla - report'Captain America: Brave New World' crashes in second weekendSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Chapter 1: What are the top headlines in today's episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Monday, February 24th. I'm Julie Morgan. Alibaba is investing heavily in cloud and AI. ProSys makes a major acquisition, and Shein is not doing as well as it once did.
Chapter 2: How much is Alibaba investing in AI and cloud infrastructure?
Alibaba on Monday unveiled plans to invest at least 380 billion yuan or $52.44 billion in its cloud computing and artificial intelligence infrastructure over the next three years. The investment, which exceeds Alibaba's total AI and cloud spending over the past decade, comes as global competition between the U.S., China, and Europe heats up.
Chapter 3: What are Alibaba's recent developments in cloud computing?
During its latest earnings call, Alibaba's CEO emphasized that cloud computing remains Alibaba's clearest revenue driver in AI, with demand for AI hosting services surging. Alibaba's cloud intelligence group's revenue, excluding revenue from Alibaba-consolidated subsidiaries, grew 11% year-over-year for the three months ended December 31st.
Chapter 4: How does Alibaba's AI model compare to its competitors?
Alibaba has been developing large language models, or LLMs, to compete with its Western and local rivals. Last month, the company unveiled that its Quen 2.5 VL model, which it said fared better than OpenAI's GPT-40, Anthropix Clawed 3.5 Sonnet, and Gemini 2.0 Flash in math, document analysis, video analysis, and question-answering evaluations.
Chapter 5: What are the details of Prosus's acquisition of Just Eat Takeaway?
ProSys announces plans to acquire Just Eat Takeaway's entire issued share capital for €20.30 per share via an all-cash public offer on the Amsterdam exchange for €4.1 billion or $4.3 billion. The all-cash offer represents a 49% premium to the three-month VWAP and a 22% premium to its highest share price in three months. The stock closed at €12.43 on Friday.
Chapter 6: What led to Shein's profit drop ahead of its IPO?
Just Eat Takeaway is a food delivery platform in 17 international markets. It generated €26.3 billion in GTV in 2024. and an adjusted EBITDA of €460 million. The deal is subject to customary pre-offer and offer conditions, including obtaining regulatory approvals. Sheehan's profit reportedly dropped by more than a third last year, ahead of the company's planned initial public offering in London.
The Financial Times reported Sunday, citing two people familiar with the matter, that Sheehan's 2024 profit sank nearly 40% to $1 billion. Pressured by a poor final three months in competition from TMU, the sources said... According to the report, the people said sales rose 19% to $38 billion, and one said the numbers came from the internal projections ahead of final results.
Bloomberg reported last week that Shein had been under pressure to cut its valuation to around $30 billion ahead of the IPO in the UK. According to Bloomberg, shareholders suggested that the change was needed to get the IPO across the finish line. Now for a look at what's trending on Seeking Alpha. A Bybit hack, $1.5 billion was stolen from the Ethereum wallet in the largest ever crypto heist.
Doge is reportedly laying off workers at the auto safety agency overseeing Tesla. And the new Captain America movie crashes in its second weekend. On our Catalyst Watch for the Day, the post-IPO quiet period expires on Smithfield Foods and Beta Bionics to free up analysts to post ratings. The tender offer for QXO's hostile takeover bid of Beacon Roofing will expire.
And Applied Materials Management will participate in a panel discussion during the SPIE 2025 conference. Now let's check out the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is flat to $70 a barrel. Bitcoin is down 0.5% at $95,000. In the world markets, the FTSE 100 is up 0.2% and the DAX is up 0.6%.
Equinox Gold is on our list of the biggest movers of the day pre-market. EQX is up 3% after the company announced plans to acquire all outstanding common shares of Caliber Mining in a court-approved deal. On today's economic calendar, at 8.30 a.m., the Chicago Fed National Activity Index. That's it for today's Wall Street Breakfast. Thanks for listening.
To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber. Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.
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