Alibaba (BABA) stock is up about 3% in pre-market trading today, giving investors some relief after a rough few months. The stock has dropped nearly 27% from its 2025 highs, even though it’s still up over 27% year-to-date.
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The drop followed weaker-than-expected earnings for the March quarter and growing pressure from rivals in China’s competitive retail market. Investor concerns also grew after Alibaba raised $1.5 billion through bond sales linked to its healthcare unit, which led to more selling.
What’s Driving New Optimism?
Despite recent weakness, many investors still believe in Alibaba’s long-term story. The company is investing heavily in new areas like AI, cloud services, and global e-commerce. It’s working with major firms like Apple (AAPL) to bring smart tech to users in China. For example, Alibaba has partnered with Apple to support “Apple Intelligence” on iPhones, which may require local help due to China’s strict data rules.
In addition to product expansion, Alibaba has been actively buying back shares and managing its capital more tightly. In its latest filing with the Hong Kong Stock Exchange, the company reported changes in its share count due to share repurchases and the issuance of employee stock awards.
These moves show that Alibaba is being more careful with how it handles money, which may help build investor trust over time.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain highly bullish about Alibaba’s stock trajectory. With 13 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $164.14 implies about 54% upside potential from current levels.
