Alibaba ( (BABA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Alibaba, the Chinese e-commerce giant, is facing challenges as it prepares to report its Q1 FY26 earnings. Analysts have expressed concerns over the company’s profit margins due to rising competition in China’s local commerce sector, particularly in food delivery and instant retail. Mizuho’s top analyst, Jason Helfstein, has lowered his price target for Alibaba from $160 to $149, citing margin pressure as a significant issue. Despite these challenges, Alibaba remains committed to maintaining its market share through substantial subsidies, including a 50 billion yuan initiative via its Taobao unit.
On a positive note, Alibaba has unveiled its latest open-source AI model, Qwen3-Coder, designed to assist developers with software development tasks. This move is part of Alibaba’s broader strategy to compete with U.S. tech giants in the AI space. The company is also making strides in its cloud and AI businesses, which are seen as key long-term growth drivers. Analysts remain optimistic about Alibaba’s stock, with a consensus rating of Strong Buy and a projected upside potential of over 25%.