Alibaba stock (BABA) (HK:9988) is trading higher today after its updated AI app, Qwen, gained strong early traction. The app has already crossed 10 million downloads within a week of its relaunch, boosting confidence that Alibaba can compete in the fast-growing consumer AI space. Shares rose more than 5% in Hong Kong trading on Monday following the news.
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With Qwen gaining momentum, attention now shifts to Alibaba’s Q2 earnings on Tuesday. Wall Street analysts expect Alibaba to report earnings of $0.85 per share for Q2 on revenues of $34.30 billion. Investors will watch for updates on AI plans, cloud performance, and any signals on its consumer-facing AI roadmap.
Qwen App Launch Sparks Early Momentum
The strong start for Qwen comes after Alibaba renamed and refreshed older AI apps and brought them together under one brand. The launch places Alibaba among the fastest-growing AI apps in China, where ChatGPT is not available.
Kenny Ng, a strategist at China Everbright Securities, said the early response could influence how investors value Alibaba going forward. He added that the market sees the launch as a key step in comparing Alibaba’s AI potential with platforms like OpenAI.
Alibaba plans to continue improving Qwen in the coming months, with features that help users shop, book travel, order food, and complete tasks across platforms such as Taobao and Alipay.
AI Strategy Helps Boost Sentiment
Qwen’s early traction supports CEO Eddie Wu’s push to position Alibaba as an AI-first business, not just an e-commerce company.
Meanwhile, AI adoption is also growing across Alibaba’s wider ecosystem. Alibaba’s fintech affiliate Ant Group also launched its AI assistant LingGuang last week. It has already crossed one million downloads in just four days, showing growing demand for local AI apps in China.
Is Alibaba Stock a Buy Now?
Wall Street remains positive on Alibaba ahead of earnings. Analysts expect the company’s AI push, steadier demand trends, and growth in cloud services to support the business over time. The early traction from Qwen adds another potential driver and may help improve sentiment.
On TipRanks, BABA stock commands a Strong Buy consensus rating based on 19 Buy ratings and two Hold ratings. The average Alibaba price target of $198.21 implies about 29.61% upside potential from current levels.
