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 heads into its Q3 FY26 earnings on February 19 with growing investor attention on how its aggressive artificial intelligence and cloud investments will reshape profits. The stock is up more than 7% since 2025 and about 5% this year, with Wall Street expecting roughly $42 billion in revenue, an 8% rise, but earnings per share dropping to $1.68 from $3.09 as spending climbs.
Analysts are divided on the near-term payoff from Alibaba’s strategy. Erste Group downgraded the stock to Hold, citing weaker operating margins and higher long-term debt, and warning of a sideways share price. Jefferies, however, kept a Buy rating and a $225 target, highlighting AI agents, in-house AI chips and strong Alibaba Cloud momentum as long-term growth drivers.
Alibaba’s latest Qwen app update, which tightly links AI features to Taobao, Alipay, Fliggy and Amap, is seen as a key step in turning AI into a task-completing ecosystem rather than a simple chatbot. This integration, plus rising enterprise use of Alibaba Cloud’s AI models and computing services, underpins expectations of a long runway for cloud-driven revenue growth.
Despite TipRanks’ AI Analyst cutting Alibaba to Neutral due to weak cash flow, margin pressure and valuation concerns, human analysts remain broadly bullish. The stock holds a Strong Buy consensus with 15 Buys and one Hold, and an average price target near $203, implying about 30% upside as investors watch for proof that heavy AI and cloud spending can translate into stronger, more sustainable earnings.