Alibaba (BABA) stock has come into the spotlight after it recently announced that its cloud arm, Alibaba Cloud Intelligence, has led a new $100 million funding round for Chinese humanoid robot startup X Square Robot. At the time of writing, BABA stock is trading 3% higher in pre-market. Notably, the TipRanks A.I. Analyst forecast has joined Wall Street’s bullish outlook on BABA stock, highlighting confidence in the company’s long-term prospects.
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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 78 out of 100 with an Outperform rating. Meanwhile, the A.I. analyst assigns Alibaba a price target of $154, implying a 9% upside potential.
Overall, Alibaba’s stock score reflects strong earnings performance and solid financial metrics as key drivers. Moreover, positive technical analysis data support a favorable outlook.
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 delivered a strong Q1 FY26, led by gains in AI and cloud. Revenue of 247.7 billion yuan ($34.6 billion) was just shy of the 252.9 billion yuan expected, but cloud sales stood out, rising 26% year-over-year to 33.4 billion yuan. Adjusted earnings per ADS were $2.06, topping estimates of $1.98. In addition, user engagement is improving. Quick Commerce drove a 20% jump in daily active users, lifting platform traffic and adding strength to Alibaba’s e-commerce business.
On the negative side, competition is a major concern. Rivalry in quick commerce, especially in food delivery, could weigh on near-term growth and slow share gains. At the same time, profits remain under strain. China e-commerce EBITA dropped 21% from a year ago, reflecting high spending to support quick commerce expansion.
What Is the Price Target for BABA Stock?
Analysts remain bullish about Alibaba’s stock trajectory. With 12 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $165.23 implies about 17.02% upside potential from current levels.
