The FTSE 100 rallied towards all-time highs on Friday despite several risks creeping in that could derail the optimism in equity markets in the early stages of 2026.

London’s leading index was 0.5% higher at 10,203 at the time of writing as UK markets shrugged off a raft of concerns, including Trump’s pick for Fed chair, an attack on Iran, and volatility in the dollar.

“It’s a potentially big day for financial markets amid chatter that Donald Trump will announce his pick for the new Federal Reserve chair,” said Dan Coatsworth, head of markets at AJ Bell.

“Reports suggest Kevin Warsh is primed to take the role. Investors seem to be taking this as a positive sign in terms of Fed independence – with Warsh perceived as a more orthodox choice versus some of the other mooted names. He has previously served as a Fed governor and went up against Powell when he got the job of chair in 2017.

“The decline in US futures prices and uptick in the dollar reflect the thinking that Warsh won’t be a marionette for the Trump administration. It implies the chances of aggressive rate cuts in 2026 regardless of the backdrop, something which Trump has not been shy in calling for, are slimmer.”

Dollar volatility has been a key driver of financial markets this week, particularly for the FTSE 100, sending gold and silver prices to record highs and affecting London’s overseas earners.

On Friday, the dollar rebounded, sending metals prices sharply lower and pushing mining stocks into the red, weighing on the FTSE 100 index.

After breaking through $5,600 just days ago, gold momentarily fell back below $5,000 on Friday before rebounding to $5,134 at the time of writing.

Fresnillo dropped 4% while Antofagasta lost 3.3% after storming gains earlier in the week.

Airtel Africa was the top faller, sinking 7%, after releasing a strong Q3 trading statement that clearly wasn’t strong enough to spark a fresh rally after the stock tripled in 2025.

But there was enough strength elsewhere to lift the FTSE 100.

Experian, up 3%, was the FTSE 100’s top riser after announcing a fresh share buyback of $1bn, which will be music to the ears of investors who have watched the share price drift lower over the past year.

“UK-based data and tech company Experian announced a new $1bn share buyback program this morning, commencing immediately,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“That’s clearly in response to its roughly 20% share price decline year-to-date as the baby’s seemingly been thrown out with the bathwater, on fears of increased competition. Underlying trends at the business remain strong, so this looks like an opportunistic way to create value for current shareholders.”

The dollar’s strength was integral to the FTSE 100’s gains on Friday, with many of the stocks that had suffered from its weakness earlier in the week rebounding.

Heavyweights AstraZeneca and HSBC were both higher by around 1%, adding a substantial number of points to the index.

Amazon is in talks to make a bumper investment of up to $50 billion in OpenAI, according to reports from The Wall Street Journal, as the tech giant seeks to accelerate its artificial intelligence ambitions.

OpenAI is thought to be preparing for an IPO later this year, and the race is on for the firm to be the first pure-play foundational AI model firm to list, with Anthropic also reported to be preparing for an IPO.

The potential deal would make Amazon the largest investor in OpenAI’s ongoing fundraising round, which is reportedly targeting up to $100 billion. The round could value the ChatGPT creator OpenAI at an eye-watering $830 billion. OpenAI is currently valued at $500 billion.

Amazon CEO Andy Jassy is personally leading negotiations with OpenAI chief executive Sam Altman, though the exact structure of any agreement remains fluid and could still change, according to sources familiar with the discussions.

Should the round value OpenAI at $830 billion, it would set the firm on a path for an IPO at a valuation of over $1 trillion – Saudi Aramco, valued at $1.7 trillion at the time of listing, is the only company to date that has listed with a valuation of more than $1 trillion.

But OpenAI isn’t alone in targeting a $1 trillion valuation on IPO. Elon Musk has touted a $1 trillion valuation for SpaceX on IPO while the FT reported recently that the valuation could be as high as $1.5 trillion.

Empyrean Energy (LON: EME) has come to an agreement with Conrad Asia Energy to resolve its dispute over the Duyung PSC and Mako gas field in Indonesia. First gas could be in the fourth quarter of 2027. A special purpose vehicle will be established to own these investments, and Empyrean Energy will own 8.5%. After this Empyrean will pay $353,000 to Conrad and a further $353,000 will be paid out of dividends from the special purpose vehicle. Empyrean’s secured convertible note will be restructured, and the lender will be paid out of dividends from the project. The share price tripled to 0.105p.

Artemis Resources (LON: ARV) published its quarterly activities report to December 2025. Drilling at the Titan East gold discovery should complete in the current quarter and follow-up diamond drilling will test strike and depth. The company has already announced plans to leave AIM on 13 February. The share price recovered 8.33% to 0.325p.

Video games art outsourcing provider Winking Studios (LON: WKS) expects 2025 revenues to be at least 40% higher than the $31.9m reported in 2024. That is slightly higher than expectations. Organic growth was in mid-to-high single digits. EBITDA is anticipated to be between 7% and 13% ahead of the $4.8m reported in 2024. There are already approximately $34.6m of bookings to be recognised this year. The full year results are due to be announced on 27 February. The share price increased 6.25% to 12.75p.

Investment bank Peel Hunt (LON: PEEL) is trading more strongly than expected in the year to March 2026. No specific figures were announced but the revenues are expected to exceed current consensus of £122.8m, and pre-tax profit should be more than £15m. Revenues will be announced on 1 April. The share price rose 6.07% to 113.5p.

FALLERS

Sensing and measurement technology developer Transense Technologies (LON: TRT) has not been securing new contracts as fast as it hoped. Also, iTrack royalty income is likely to be10% lower than expected at £2m with the total revenues for the group are forecast at £5.2m, down from £5.55m last year. The SAWsense and Translogik businesses should grow revenues by 30%. The company was profitable in the first half and had cash at £1.33m. The interim results will be released on 17 February. The share price slumped 35.6% to 72.5p.

Trading in Aura Energy (LON: AURA) shares continues on AIM but has been suspended on ASX pending a capital raising. Aura Energy is developing the Haggan polymetallic project in Sweden, where the government has overturned the ban on uranium mining. A 20% outside investment in the project values it at A$55m. The share price is 16.7% lower at 10.5p.

Medical device developer RUA Life Sciences (LON: RUA) generated revenues of £6.7m in the 18 months to September 2025 and there was a move into positive EBITDA. The pre-tax loss was slashed from £2.02m to £236,000. Cash was £3.25m at the end of September 2025. Management further hopes to further exploit the company IP. The share price slipped 7.94% to 14.5p.

Allergy Therapeutics (LON: AGY) has appointed Helge Weiner-Trapness as chief strategy officer and Lawrence Allen Wang as independent non-executive director. The share price fell 7.56% to 11p.

Apple shares were steady in the US premarket after the tech group reported record iPhone sales, but left investors worried about costs and a lack of a story around AI.

Apple shares were trading at $258 in the US premarket, barely changed from the cash close yesterday.

There was a lot to like in Apple’s update. iPhone revenue smashed estimates, coming in at $85.3 billion versus the $78.7 billion expected for the quarter. Strong iPhone sales contributed to the group’s record revenue of $143.8 billion.

But record revenue wasn’t enough to spark a rally in shares as investors fretted about the tech giants’ AI strategy. Unlike other Mag 7 stocks such as Meta and Microsoft, Apple isn’t spending mountains of cash on AI. It does, however, lack a coherent narrative about how it will stay relevant in the age of AI.

“Apple delivered a standout iPhone quarter, but investors came away wanting more – specifically, a clearer AI story,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

Rather than spending billions to build out its own models, Apple is set to adopt other firms’ tech by integrating Google’s Gemini into its stack.

This will make Apple a hardware play going forward and may not be as attractive as the players that own the AI technology. That said, you can’t take anything away from record iPhone sales, which demonstrate that Apple’s innovation cycle still works and is able to produce growth in China.

There were signs of weakness in Mac sales – something investors will have a close eye on in the coming quarters.

“Markets were expecting a good quarter for the iPhone, but weren’t expecting to see China firmly back in the mix as a major source of strength,” Britzman said.

“With services steady and Apple continuing to spend light while buying back stock aggressively, a clear divergence is emerging between Apple and the other tech giants.

“The outlook for the March quarter was better than analysts had forecast, but not quite enough to shift the overall mood. Apple is still wrestling with parts shortages and rising component costs, which adds some caution to an otherwise upbeat guide.

“What’s really keeping a lid on things is Apple’s slow progress in AI, a gap that now feels pivotal to close. Investors are looking for practical, AI-powered products that genuinely move the needle – something Apple Intelligence hasn’t delivered. Customers remain fiercely loyal to the brand, but shareholders want to see a clearer plan and real execution, which likely explains why the stock barely budged despite a strong quarter. There’s still a great opportunity at hand for Apple to show it can lead again, not just follow.”

Cohort has announced that its subsidiary, Marlborough Communications Ltd (MCL), has won contracts totalling £17.9m.

The larger award, valued at £14.0m, comes from a UK government customer and covers the immediate delivery of uncrewed air systems along with two years of in-service support. MCL will collaborate with its long-standing partner Skydio to supply these systems.

Additionally, MCL has received a separate order worth £3.9m. This contract involves the supply of tactical audio systems for a UK customer.

The dual contract wins underscore MCL’s strengthening position in defence technology solutions and its ability to deliver advanced systems to government clients.

“These valuable orders demonstrate the strength of MCL’s relationships with its UK customers. Its highly skilled and knowledgeable team has a proven track record of combining the latest innovations in technology with expert engineering to meet urgent defence needs,” said Andrew Thomis, Cohort Chief Executive.

“These latest contracts, combined with other recent orders across the Group, further enhance our order book and the visibility of future revenues. Sufficient orders have now been secured to underpin fully the Group’s 2025/26 financial year consensus forecast revenue.”

Cohort shares were around 1% higher at the time of writing.

The fresh contract wins follow Cohort’s interim report released earlier in January, which highlights continued revenue growth for the group. Cohort’s revenue hit £128.8m in the 6 months to October 2025, up from £118m in the same period a year prior.

The FTSE 100 rose on Thursday as miners helped lift the index amid a fresh commodities rally and an encouraging production report from Antofagasta.

London’s leading index was 0.5% higher at the time of writing, trading just above 10,200.

In addition to a buoyant commodities sector, sentiment received a boost from US equities, where the S&P 500 topped 7,000 for the first time after the Fed held rates, highlighting a robust jobs market

“The FTSE 100 got off to a strong start as gold moved through $5,500 and oil ticked up amid mounting tensions between the US and Iran,” said AJ Bell investment director Russ Mould. 

“The mining sector did much of the heavy lifting for the index, buoyed by a positive production update from Glencore and the impact of precious metals strength on Fresnillo and Endeavour. BP and Shell were lifted by a stronger crude oil price.

“Wall Street yesterday greeted the latest Federal Reserve decision with a shrug as interest rates were kept on hold – with much of the action coming after the market close as investors reacted to results from Tesla, Microsoft and Meta. Asian markets were more downbeat as the possibility of conflict in the Middle East was weighed up.”  

US futures were pointing to a higher open, suggesting the rally could build as the European session progresses.

In London, Antofagasta was the latest miner to issue its production report amid surging metals prices, sparking a 7% rally in shares on Thursday.

“Yet another FTSE 100 miner has been able to bask in the glow of surging metal prices, which have propelled the share price to astonishing new highs in under a year,” said Chris Beauchamp, Chief Market Analyst at IG.

“Even a miss on copper output has not dented the rally – everyone can see the madness in metals prices, but there seems no sign of it slowing down. Investors can be forgiven for hoping that the vast profits set to be reaped by miners will translate into better dividend payments in the near future.”

Whether Antofagasta’s rally on Thursday was due to the production report or the sharp overnight price increase driven by Chinese investors remains to be seen, but one thing is for sure: the copper miner is well placed to create shareholder value in the year ahead.

This sentiment was felt across the mining sector, with Glencore, Rio Tinto, and Anglo American all rising by more than 3%.

BP and Shell rose as oil prices rose amid tensions in the Middle East and a drawdown in US inventories yesterday.

3I Group was the FTSE 100’s top riser after the trust’s top holding, Action, performed well during January, and growth continued to motor with strong like-for-like sales and store openings. 3I shares were 10% higher at the time of writing.

Lloyds shares were flat after beating earnings estimates and announcing a fresh £1.75bn share buyback. The muted market response reflects a strong run into results rather than any disappointment around the results.

Richmond Hill Resources (LON: RHR) shares have risen 21.7% to 2.8p following yesterday’s £600,000 placing at 2.6p, which was at a premium to then then market price. A WRAP retail offer could raise up to £100,000 more and it closes at 4pm on 30 January. Richmond Hill Resources has entered an agreement to acquire the Martello gold project. An initial £100,000 cash payment is being made and 38.75 million shares issued at 2p each.

Great Western Mining (LON: GWMO) has announced assay results from a machine-cut channel sampling programme at the Defender tungsten project in Nevada. Channels A and B showed significant tungsten mineralisation. Silver mineralisation was found in Channel B. The share price recovered 12.2% to 1.75p.

Alien Metals (LON: UFO) says joint venture partner GreenTech Metals is accelerating the phase 1 drill programme at the Munni Munni platinum palladium copper nickel project. A second drill rig will be used. The share price increased 10.3% to 0.215p.

Oil and gas company Seascape Energy (LON: SEA) has upgraded the Keladi prospect. The competent persons report indicates 950bcf of net mean unrisked prospective resources on the Temaris block. Management believes Temaris and Tembakau could become a transformative gas hub for Peninsular Malaysia. The share price improved 11.5% to 77.5p.

FALLERS

Eqtec (LON: EQT) is raising £1.3m at 0.035p/share and this represents 36% of the enlarged share capital. A restructuring of £5.79m of debt will lead to £1.93m being converted into shares. The rest will be changed into £1.93m secured, zero-coupon debt and £1.93m. There is £166,000 of debt owed on the convertible facility with GIS. As part of its new strategy Eqtec is acquiring 99% of the Green Rock copper gold exploration project in Western Australia. It is paying $150,000 in cash and shares. The remaining 1% stake has a carry up to $350,000 and after that it will be lent cash by Eqtec to pay for its contribution with repayment out of future revenues. There is also an option over a 99% interest in the Peak Hills gold copper exploration project in Western Australia. The waste to energy activities will continue to be a core part of the group. The share price slid 27.8% to 0.065p.

Arkle Resources (LON: ARK) is paying £2.03m in cash and shares for an 85% interest in Namibia Uranium, which has four prospecting licences. A placing raised £1.7m at 0.4p/share. There is up to 4,000 metres of drilling planned. The licences are near to three major uranium deposits in Namibia. The share price decreased 14.3% to 0.45p.

Georgia-focused oil and gas producer Block Energy (LON: BLOE) has extended its $2m loan facility until 2 August 2027 on broadly the same terms. The share price fell 3.85% to 1.25p.

Mark and Diana Dixon have increased their stake in SkinBioTherapeutics (LON: SBTX) from 17.8% to 19.3%. The share price declined 3.53% to 20.5p.

Ex-dividends

BP Marsh (LON: BPM) is paying a dividend of 22.33p/share and the share price dipped 6p to 672p.

Gooch & Housego (LON: GHH) is paying a final dividend of 8.3p/share and the share price fell 4p to 704p.

Tracsis (LON: TRCS) is paying a final dividend of 1.4p/share and the share price declined 5p to 360p.

Lloyds kicked off the latest installment of FTSE 100 banking earnings with Q4 and full-year results that exceeded expectations and underscored the bank’s ability to take economic concerns in its stride.

Underlying pre-tax profit for the fourth quarter came in at £1.9bn, 9% higher than expectations, and full year underlying profit rose to £6.8bn, 7% than the prior year.

“Lloyds is galloping ahead of expectations this morning, delivering a clear profit beat against consensus and upgrading its guidance through 2026,” said Max Harper, Analyst at Third Bridge.

“The bank’s income diversification strategy looks increasingly promising; specifically, the acquisition of the remaining stake in Schroders Personal Wealth presents a significant opportunity to boost revenue through strategic cross-selling.”

Underlying net interest income rose 6% to £13.6 billion, supported by an improved banking net interest margin of 3.06%, up 11 basis points year-on-year. Other income climbed 9% to £6.1 billion, reflecting stronger customer activity and the benefit of strategic initiatives, including a focus on wealth and retail banking.

Strategic initiatives contributed £1.4 billion in annualised additional revenues, putting the business on track to exceed its revised 2026 target of approximately £2 billion.

LLoyds net interest margin expanded to 3.10% in the fourth quarter, whilst average interest-earning banking assets increased to £462.9 billion. The increase in net interest margins is extremely encouraging, given the falling base rate.

“Lloyds is quietly proving itself one of the smartest operators in UK banking, with fourth‑quarter profits coming in 9% ahead of expectations,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The market is still underestimating the resilience of its customer base, but the data tells a different story. Arrears remain low, early warning signs are calm, and impairments are once again impressively contained. It’s the sort of backdrop that shows a bank not just coping with stress, but gliding through it.

“Guidance for 2026 landed pretty much where the market expected, with Lloyd’s pencilling in a couple of rate cuts, low single‑digit house price gains and a touch of GDP growth. Together, guidance points to roughly £20.3 billion of top-line net income next year – a shade above consensus, and likely enough to nudge analyst numbers upward.”

Investors will be rewarded via a fresh £1.75bn buyback and 15% increase in the total dividend for the year.

Lloyds shares were fairly flat on Thursday, reflecting a strong run-up ahead of results.

Analysis for informational purposes only. Capital at risk.

Highlight

• Alibaba’s Lead in the AI Agent Race: While Google is still trying to tackle the API walls created by a fragmented industry, Alibaba has already showcased its Qwen AI agent, which delivers seamless AI shopping across online retail, food delivery and travel.
• The “Silent Killer” Strategy: Qwen intercepts user intents such as booking flight or ordering bubble teas and routes transactions into Alibaba’s ecosystem, effectively disintermediating vertical rivals such as Meituan and Trip.com.
• Strategic Trade Off: Alibaba is consciously willing to cannibalize ad revenue from merchants in order to recapture market shares. It prioritises growing user base over maximizing yield from marketing services.

Agentic AI – The Next Major Leap

Agentic AI, or “Super AI Agents,” is widely seen as the next major step in AI. These agents can execute real‑world tasks such as shopping, booking hotels and making payments from a single user command. The prevailing narrative is that AI agents will displace websites and apps, and users will simply ask and receive.

The “Brain Without Hands” Problem in the US

However, US attempts to build Super AI Agents have run into practical obstacles.

The “API Wall”: Major online verticals such as Amazon are concerned about being disintermediated and therefore limit direct API access to OpenAI, Google, and other third-party agents. Without authorized access, AI agents cannot integrate seamlessly with transactional systems.

The Optical Workaround: Some companies, including Microsoft and Anthropic, resort to “optical simulation”, which takes screenshots, interprets pages, and simulates user inputs. However, it is slower and more error-prone than human interaction, sensitive to UI changes, and prone to breaking on multi-step flows.

Google’s Universal Protocol: Google recently announced the Universal Commerce Protocol, or UCP, a standardized language intended to let AI agents communicate with merchants and platforms. The initiative has attracted support from partners including Shopify, Etsy, Wayfair, Target, and Walmart. However, Amazon has not joined the alliance, so there is still no single entry point for shoppers. Implementation timelines remain unclear, so UCP’s ability to enable seamless agent execution and payments is still unproven.

Alibaba’s “Walled City” Solution

On the other hand, Alibaba already showcased its Qwen AI Agent by leveraging its existing ecosystem. Qwen does not need to simulate mouse clicks. It integrates natively across Alibaba’s services.

Alibaba owns the payment (Alipay), the inventory (Fliggy, Taobao, Ele.me, and others), and the Map (Amap). Qwen operates via native API rather than optical simulation.

User case 1: Instant commerce—buying bubble tea

• User prompt: “Order 40 cups of bubble tea from Bawang Chaji.”
• Qwen action: Searches Taobao Instant Commerce, applies the best coupon, and generates an Alipay order.
• User action: Confirms payment with one tap inside the chat. No app switching, no links.

User case 2: Business trip—flight booking

• User prompt: “Book the first flight to Beijing tomorrow on Air China.”
• Qwen action: Queries Fliggy inventory, auto-fills passenger ID from Alipay and completes the booking.
• User action: Confirms with one tap.

User case 3: Movie night—ticket purchase

• User prompt: “Two tickets for Avatar 3 at the nearest IMAX tonight.”
• Qwen action: Geocodes location with Amap, filters IMAX screens, selects middle seats, and generates the order.
• User action: Confirms with one tap.

With 400+ operational capabilities, Qwen has transitioned from a Large Language Model (LLM) to a Large Action Model (LAM).

Qwen can complete end‑to‑end transactions reliably and securely because it operates through APIs and unified account data. In addition, one‑tap flow reduces friction and keeps users inside Alibaba’s ecosystem, increasing monetisation potential.

Why the US Can’t Achieve This?

Key question: Why Amazon, Apple or Google not able to build a true Super App that executes end‑to‑end transactions via AI?

The Answer:  A true “Super App” requires three key assets under one roof:

1. Brain — proprietary AI that understands intent and controls actions.
2. Wallet—a payment and settlement system that can complete transactions and handle post‑payment flows.
3. Inventory—direct access to goods and services (retail, travel, food, tickets, etc.).

Alibaba has all three. Its native API integration plus unified identity and payments allow it to complete end‑to‑end flows reliably.

Alibaba (The Benchmark)

• The Trinity: Owns the AI (Qwen) + payment (Alipay) + Inventory (Fliggy/Taobao).
• The Verdict: The Only “True Agent.” It commands the entire transaction loop.

In the US, the necessary assets are split across different companies with conflicting incentives, creating an API wall and preventing a single firm from becoming the de facto execution layer.

The practical result is that Alibaba can offer a one‑tap agentic experience today, while US agents remain constrained by fragmented ownership and commercial frictions.

Amazon — The shopping assistant

• Strength: Owns retail inventory and has Amazon Pay.
• Gap: Limited service inventory (travel, local on‑demand transport) and Amazon Pay behaves like a credit‑card wrapper rather than a unified settlement layer.
• Limit: Great for buying commodities, but it struggles to fully automate multi‑step service transactions such as booking flights or hailing taxis.

Apple — The middleman

• Strength: Tight integration across devices and a widely used wallet (Apple Pay).
• Gap: No owned inventory; third‑party apps must opt in to deeper control.
• Limit: Most partners provide only read‑level access to Siri for status queries, not write‑level access for booking or ordering, preserving their app traffic.

Google — The ad trap

• Strength: Unmatched intent data from search and maps.
• Gap: No owned inventory and a structural conflict with its core ad business.
• Limit: If Google’s agent executes transactions directly, it risks cannibalising search ad revenue.

The “Silent Killer” of Vertical Apps

If Qwen becomes the new browser for China, who will lose? We believe vertical super apps such as Meituan (food and services) and Trip.com (travel) are at risk.

How disintermediation works

• Intercept: Users no longer open vertical apps. They tell Qwen, “Book a hotel.”
• Routing: Qwen resolves intent upstream and routes the transaction to Alibaba’s subsidiaries (Fliggy for travel, Ele.me for food).
• Result: The vertical app never sees the user and is effectively disintermediated.

Margin Expansion for Alibaba

In our view, such disintermediation creates margin expansion opportunities for Alibaba.

• Old model: Alibaba spent heavily on marketing and subsidies to acquire users, compressing margins in food delivery and quick commerce.
• New model: If Qwen becomes the default entry point, traffic is generated organically within the ecosystem, lowering customer acquisition cost.
• Impact: Lower customer acquisition cost (CAC) translates into meaningful margin improvement potential across Alibaba’s consumer businesses.

The Regulatory Twist: While Alibaba suffered from China’s antitrust law several years ago, China’s Anti-Unfair Competition Law (Oct 2025), which tightens rules on illegal data crawling and scraping, effectively strengthens Alibaba’s competitive edge.

• Kills the “Aggregator”: Third-party AIs cannot simply scrape Taobao or Fliggy to execute transactions.
• Forces “Native Ownership”: Legal execution requires authorised access via APIs and permissions. As Alibaba owns the data and APIs, Qwen retains native execution rights by default, reinforcing Alibaba’s market position.

The Strategic Balance: Cannibalization vs. Conquest

Like Google, Alibaba faces a trade‑off between cannibalisation and conquest. Qwen can streamline discovery and execution so effectively that it risks displacing Alibaba’s own advertising and value‑added services for its merchants on Taobao and Tmall. If Qwen handles intent and fulfillment directly, its marketing services could see lower yield.

That said, Alibaba appears to accept short‑term yield dilution in pursuit of long‑term share conquest.

• Upstream capture: Qwen acts as a universal interface that intercepts user intent before competitors such as Pinduoduo, Meituan and Trip.com.
• Volume over yield: Capturing higher transaction volume, even at lower monetisation, can be more valuable than preserving high margins on a shrinking traffic base.
• Lifecycle monetisation: Owning the end‑to‑end relationship increases opportunities to monetise across services (payments interchange, financial products, instant commerce, loyalty), partially offsetting lower ad yields.
• Competitive defense: Gaining share today establishes barriers to rivals, creating a durable advantage over time.

Alibaba is prioritising ecosystem control and sustained user engagement over short‑term yield, betting that long‑term economic value from native transactions, payment flows, and cross-sell will exceed the lost yield.

This article is a “periodical publication” for information only and is not investment advice or a solicitation to buy or sell securities. This article does not constitute a “personal recommendation” or “investment advice” under UK FCA regulations. Investing in equities involves significant risk. The author holds NO position in the securities mentioned. There is no warranty as to completeness or correctness. Please do your own due diligence or consult a licensed financial adviser. Please read the Full Disclaimer before acting on any information. Images created with the assistance of Gemini AI.

Article provided by Asia Pulse.