This week, the latest announcement by the US Federal Reserve that key interest rates would remain unchanged for the time being only briefly provided some reassurance. Instead, concerns about the ongoing risk of stagflation and the disruptive power of artificial intelligence are dominating the debate. Three companies, seemingly separated by industries and national borders, have more in common than first glance suggests: they have all deeply embedded digitalization in their DNA and are pursuing growth strategies. Today, we look at which business models could face challenges due to US tariffs and which ones appear safe.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
ALIBABA GR.HLDG SP.ADR 8 | US01609W1027 , CREDISSENTIAL INC | CA22535J1066 , MICROSTRATEG.A NEW DL-001 | US5949724083
Table of contents:
"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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Alibaba – Innovation through AI cloud technology
The Alibaba Group has entered the competition for the best artificial intelligence, in particular by further developing its Qwen 2.5-Max model. With a combination of reinforcement learning and human feedback (RLHF) and supervised fine-tuning, the model achieves significant results in benchmarks such as Arena-Hard and LiveBench. Integration projects in Alibaba's cloud division have generated double-digit growth, demonstrating how much AI products drive sales. The model's efficient architecture, which scores through mixture of experts methods, increases the relevance of queries while reducing FLOPs and optimizing costs.
Alibaba recorded a revenue growth of 6.37% to USD 33 billion in the past quarter, exceeding analysts' expectations. However, operating income fell by 3% to around USD 2 billion and net income collapsed by as much as 86% to USD 455 million. These declines are, however, due to higher investments and one-time costs. Investments were made in cloud infrastructure and the international e-commerce business. With the new US tariffs, some business could be lost from platforms such as AliExpress or Cainiao.
The strategic focus on core areas such as e-commerce and cloud computing is driving Alibaba's efficiency. Sales of non-core investments, such as those in Intime and Sun Art, show the clear priority of digital business models. For 2025, analysts see an average price target of USD 133.90. This is supported by an extensive share buyback program. The new quarterly figures will be released today, February 5. It will be interesting to see. The share price has already risen in anticipation and is currently trading at USD 100.18.
Credissential – An AI pioneer with ambitions in the fintech and automotive markets
Credissential, a Canadian fintech company, is using artificial intelligence to revolutionize two key markets: digital car trading and fintech. The Company is targeting the automotive sector with its "DealerFlow" app. "DealerFlow" integrates an AI-supported sales funnel that analyzes customer preferences and suggests suitable vehicles – even if the local dealer does not have them in stock. By connecting independent vehicle dealers in the US, of which there are around 60,000, a virtual bulk inventory is created, which attracts customers and facilitates additional transactions such as financing or insurance. The app is user-friendly, optimized for mobile devices, and secure.
By 2026, Credissential aims to connect 250 dealers in order to reach the profitability threshold. With a US market volume of 38.6 million used vehicles (2023), there is considerable potential for scaling. Together with its proprietary payment platform, "Antenna", synergies are created. The finance app offers secure transactions, file transfers via QR codes activated only after payment, and the integration of cryptocurrencies through the Privy Wallet, all with post-quantum cryptography. This makes the app secure against attacks from quantum computers, ensuring its future-proof security.
With around 80% of all banks in Japan planning to switch to Ripple's XRP technology to benefit from cost reductions, higher speed, efficiency and scalability, and the first major banks in the US, such as Goldman Sachs, also relying on RippleNet, Credissential has decided that cryptocurrencies will be part of the corporate strategy. The Company plans to potentially invest USD 500,000 in Ripple (XRP) and Stellar (XLM) to hedge cash reserves against inflation and capitalize on regulatory trends. CEO Colin Frost emphasizes the synergies with blockchain technology already being used in the "Antenna" payment platform. With a current share price of CAD 0.11, the Company has a market capitalization of just around CAD 6.1 million.
MicroStrategy – Rebranding itself
MicroStrategy, formerly known for its software roots, has sharpened its focus on Bitcoin and digital capital markets after a corporate rebranding and plans to rename itself Strategy. CEO Phong Le emphasized the Company's recent inclusion in the NASDAQ 100 as a catalyst for institutional Bitcoin adoption, while three new board members with crypto expertise point to deeper market ambitions. CFO Andrew Kang highlighted that Q4 2020 marked the Company's largest Bitcoin accumulation to date. Executive Chairman Michael Saylor reiterated the "unlimited holding" strategy. Subscription revenue was up 48% year-over-year, while software sales declined 3%, reflecting the shift to cloud-based services.
MicroStrategy's software revenue in Q4 fell 3% to USD 121 million, while annual subscription revenue rose 32% to USD 106.7 million. The Company acquired 218,887 Bitcoins during the quarter at an average price of USD 93,600, bringing total holdings to 471,107 Bitcoins. A USD 12.75 billion equity adjustment, associated with new accounting standards for Bitcoin, will bolster Q1 results. Despite these gains, the Company posted an adjusted loss per share of USD 3.20 due to Bitcoin impairment charges. Management highlighted a 74.3% Bitcoin return in 2024 but revised the 2025 target to 15% in light of broader market volatility.
MicroStrategy is targeting USD 10 billion in Bitcoin-related profits in 2025, supported by a USD 42 billion capital raising plan through 2027. Fixed-income securities, including convertible bonds, are expected to finance acquisitions, while debt will be limited to 20-30% of Bitcoin holdings. With the Bitcoin price serving as the anchor of the balance sheet, MicroStrategy's success depends on execution – and whether its bold bets can outpace market skepticism. For investors, the risks are as high as the volatility the Company takes on.
The business models of Alibaba, Credissential, and MicroStrategy show strengths and risks. Alibaba successfully relies on AI-driven cloud growth, but is challenged by declining profits and US tariffs. Credissential does not have these problems and is scoring with innovative fintech approaches and digitalizing the car trade. By digitizing its business model, it is not affected by tariffs. MicroStrategy's Bitcoin strategy is also immune to tariffs, but remains highly risky because its business model is dependent on the Bitcoin price.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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