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 is heading into its Q3 FY26 earnings on February 19 with investors sharply focused on how its big AI and cloud bets are reshaping the business. The stock has climbed over 7% since 2025, and Wall Street expects revenue of about $42 billion, up 8% year over year, even as earnings per share are projected to fall to $1.68 from $3.09 amid heavier spending.
Analysts are split on how this trade-off will play out for Alibaba’s share price. Erste Group has downgraded the stock to Hold, citing weaker operating margins, rising long-term debt, and a likely “sideways” performance, while Jefferies keeps a Buy with a $225 target, arguing that AI agents, in-house AI chips, and strong Alibaba Cloud momentum should fuel long-term growth.
TipRanks’ AI Analyst has also turned cautious, cutting Alibaba to Neutral despite a model-based price target of $185 and a score of 68/100, flagging weak cash flow, margin pressure and valuation concerns. Even so, the broader Street remains optimistic: Alibaba holds a Strong Buy consensus from human analysts, with an average price target near $203 implying roughly 30% upside as the market awaits proof that AI and cloud investments can translate into stronger profits.