Alibaba (BABA) (HK:9988) is winning attention on Wall Street as analysts grow more confident in its AI and cloud ambitions. The Chinese e-commerce leader has seen its shares surge over 100% year-to-date (YTD), powered by steady gains in its core retail business and strong progress in AI-driven cloud services. Despite the strong rally, TipRanks’ AI Analyst still sees over 7% upside from current levels and maintains a bullish stance on the stock.
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For context, TipRanks’ A.I. Stock Analysis delivers automated, data-driven evaluations of stocks based on key performance metrics, giving investors a clear and concise snapshot of a stock’s potential.
Alibaba Earns Outperform Rating
According to TipRanks A.I. Stock Analysis, BABA earns a solid score of 75 out of 100 with an Outperform rating. Meanwhile, the A.I. analyst assigns Alibaba a price target of $179, implying a 7.3% upside potential.
Overall, Alibaba’s stock score reflects strong earnings performance and promising growth in its AI and cloud segments, though cash flow challenges and mixed technical indicators remain areas to watch.
AI Analyst Weighs Alibaba’s Strengths and Weaknesses
The analysis points out both positive and negative factors weighing on the company’s stock performance.
On the positive side, Alibaba continues to gain from growth in AI and cloud services, which is boosting its position in fast-growing tech areas. The company’s Q1 FY26 results showed solid momentum, with revenue reaching 247.7 billion yuan ($34.6 billion) and cloud sales climbing 26% year-over-year to 33.4 billion yuan. The company’s consistent revenue growth highlights strong market demand and supports Alibaba’s ability to reinvest in strategic initiatives.
Meanwhile, Alibaba’s strategic partnerships, such as its collaboration with SAP, are also expanding its global reach. The deal has helped Alibaba boost its place in the enterprise cloud market by adding top business tools to its services.
However, the analysis points to a few key challenges. Lower adjusted EBITDA and continued cash outflows for new projects may hurt profits. Losses in the quick commerce unit also show rising competition in food delivery and other fast-service areas. These issues could keep pressure on margins and slow short-term earnings growth.
What Is the Price Target for BABA Stock?
Analysts remain bullish about Alibaba’s stock trajectory. With 19 Buy ratings and two Hold ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $196.32 implies about 17.69% upside potential from current levels.
