Alibaba (BABA) is doubling down on artificial intelligence, aiming to use it to transform online shopping and cloud services. It is using AI across its apps and cloud platform to improve customer experience and stay ahead of the competition. The company’s growing focus on AI, along with strong positions in cloud and e-commerce, is seen as a key driver for long-term growth. According to the TipRanks AI analyst, BABA stock received a score of 79 out of 100 with an Outperform rating.
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The AI analyst has set a price target of $134 on Alibaba stock, which implies an upside of over 14%.
BABA Stock’s Bullish Case
According to TipRanks’ AI analyst, Alibaba’s strong financial performance and growth plans are driving investor confidence. The company is focusing on fast-growing areas like cloud computing and AI to drive future growth.
One of its biggest strengths is its cloud business. Cloud sales are expected to grow in the near future, helped by more spending and rising demand for AI services. Notably, Alibaba’s AliCloud is the biggest cloud provider in China, with a 23% market share.
In addition, Alibaba is investing more money into its instant commerce business to offer quicker deliveries and grow its online sales. This move could help the company grow in the long run, even though it may hurt profits in the short term.
However, some short-term risks remain. Revenue may dip slightly due to changes in the company’s structure, and profits could be pressured by increased investment in new areas. Still, analysts believe Alibaba is making smart choices to drive long-term growth, especially in cloud and AI.
Is Alibaba Stock Expected to Rise?
Analysts remain highly bullish about Alibaba’s stock trajectory. With 14 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $153.15 implies about 31% upside potential from current levels.
