Wall Street analysts still see about 43% upside in Alibaba (BABA) stock even after the company reported weaker-than-expected Q4 FY26 results. While heavy spending on AI and e-commerce hurt profits, analysts remain bullish on Alibaba’s growing cloud and AI business. As a result, several firms raised their price targets following the earnings report.
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For context, Alibaba operates China’s largest e-commerce platforms while also expanding rapidly in cloud computing and artificial intelligence services.
Latest Analysts’ Views on BABA Stock
Following the Q4 print, Susquehanna analyst Shyam Patil raised his price target on Alibaba (BABA) stock to $185 from $170 and kept a Positive rating. The firm said Alibaba reported mixed quarterly results, with profits falling sharply as the company continues investing heavily in long-term growth areas. However, Susquehanna remains optimistic as Alibaba’s cloud business continues to grow faster and AI-related growth stays in the triple digits.
Likewise, Morgan Stanley analyst Gary Yu raised his price target on BABA stock to $190 from $180 while maintaining an Overweight rating. Yu noted that AI revenue reached 9 billion yuan during the quarter and now accounts for roughly 30% of Alibaba’s external cloud revenue.
The analyst also expects cloud margins to improve over the next few quarters as higher-margin AI services continue growing. However, Yu noted that losses tied to AI model training, quick commerce, and app investments remain key areas investors are watching closely.
Is Alibaba Stock a Buy Now?
Wall Street remains constructive on the stock. Alibaba stock carries a Strong Buy consensus rating based on 16 Buy ratings and two Holds over the past three months. The average BABA price target stands at $189.89, suggesting roughly 43% upside from current levels.
