An analysis by The Edge Singapore suggests Alibaba may be one of the most undervalued AI companies, examining its recent performance and strategic shifts. The company's retail revenue has shown positive momentum, rising 3% in fiscal year 2025 and accelerating to 10% year-over-year growth in the first quarter of fiscal year 2026. This turnaround is attributed to a strategic pivot that merged Taobao, Ele.me, and Fliggy into a single, comprehensive consumption platform. This integration, along with new features like Taobao Instant Commerce, is reportedly driving stronger user engagement. Furthermore, the implementation of AI-driven advertising tools is improving monetization and the return on investment for merchants on the platform.