Alibaba (BABA) AI Stock Analysis

• Market Cap: $283.01B
• Dividend Yield: 1.43%
• Average Volume (3M): 13.88M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.61
• Revenue Growth: 5.48%
• EPS Growth: 128.65%
• Country: US
• Employees: 124,320
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 2.07
• Shares Outstanding: 2,384,235,000
• 10 Day Avg. Volume: 17,793,264
• 30 Day Avg. Volume: 13,883,642
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 0.63
• Enterprise Value/Ebitda: 1.33
• 1Y Price Target: $161.34
• Price Target Upside: 16.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 78 Outperform
• Price Target: $154.00 ▲(11.15% Upside)

Alibaba's strong financial performance and positive earnings call insights are the most significant factors driving the score. Technical analysis shows positive momentum, but valuation is only fair. The absence of notable corporate events means the score is primarily driven by financial and operational metrics.

Positive Factors

Cloud and AI Growth

Cloud delivered a solid beat with 26% year-over-year growth and guided to further acceleration, reinforcing BABA’s position as China’s leading GenAI and cloud infrastructure provider.

User Engagement

Quick Commerce has driven a 20% increase in daily active users, boosting user engagement and contributing to higher traffic across the platform.

Negative Factors

Competition

The fierce competition in quick commerce, especially in the food delivery category, could sustain in the current fiscal quarter, posing challenges to the business.

Profitability Concerns

Adjusted EBITA of China E-commerce Group fell 21% year-over-year due to quick commerce investment.

Alibaba Business Overview & Revenue Model

Company Description

Alibaba Group Holding Limited is a leading Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. Founded in 1999, the company operates through various segments, including its core e-commerce platforms such as Taobao, Tmall, and Alibaba.com, which facilitate consumer-to-consumer, business-to-consumer, and business-to-business sales. Additionally, Alibaba has a significant presence in cloud computing, digital media, and entertainment, making it a versatile player in the global market.

How the Company Makes Money

Alibaba generates revenue through multiple key streams. Its primary source of income comes from its e-commerce platforms, where it charges merchants various fees for listing products, transaction commissions, and advertising services. The company also earns money from Alibaba Cloud, which provides cloud computing services and infrastructure to businesses, contributing significantly to its revenue growth. Furthermore, Alibaba has ventured into digital entertainment and media, including video streaming and online gaming, which also contribute to its earnings. Strategic partnerships with various companies, both domestic and international, enhance its market reach and revenue potential. Additionally, Alibaba benefits from its logistics and supply chain management services through Cainiao Network, which supports its e-commerce operations and adds another layer to its revenue model.

Alibaba Financial Statement Overview

Summary

Alibaba demonstrates strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow management. The balance sheet shows a strong equity position, though liabilities require monitoring.

Income Statement

Alibaba demonstrates strong income statement metrics with a consistent revenue growth rate of approximately 5.9% in 2025 compared to 2024. The company maintains healthy profit margins, with a gross profit margin at approximately 39.9% and a net profit margin at 13.1% for the latest fiscal year. The EBIT margin is robust at 14.1%, indicating efficient operational management. EBITDA margins also remain strong at 18.3%. These factors suggest a stable and profitable income statement performance.

Balance Sheet

Alibaba's balance sheet reflects a favorable equity ratio of 55.9%, indicating a strong equity position. The debt-to-equity ratio is reasonable at 0.25, showing balanced leverage. Return on Equity (ROE) is strong at 12.9%, demonstrating effective use of shareholder funds to generate profit. Although the company maintains a solid equity base, the growth in liabilities requires monitoring to ensure long-term financial stability.

Cash Flow

The cash flow statement indicates a positive trajectory with stable free cash flow, despite a 48.2% decline in free cash flow in 2025 compared to 2024. The operating cash flow to net income ratio is favorable at 1.26, demonstrating strong cash generation from operations. The free cash flow to net income ratio stands at 0.60, highlighting efficient cash conversion. Overall, Alibaba's cash flow management remains robust amid investment activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	996.35B	996.35B	941.17B	868.69B	853.06B	717.29B
Gross Profit	398.06B	398.06B	354.85B	318.99B	313.61B	296.08B
EBITDA	188.04B	182.67B	164.01B	153.11B	128.23B	217.96B
Net Income	130.11B	130.11B	80.01B	72.78B	62.25B	150.58B
Balance Sheet
Total Assets	1.80T	1.80T	1.76T	1.75T	1.70T	1.69T
Cash, Cash Equivalents and Short-Term Investments	428.09B	428.09B	571.03B	524.47B	455.08B	483.44B
Total Debt	248.35B	248.35B	205.61B	161.35B	141.34B	149.15B
Total Liabilities	714.12B	714.12B	652.23B	630.12B	613.36B	606.58B
Stockholders Equity	1.01T	1.01T	986.54B	989.66B	948.48B	937.47B
Cash Flow
Free Cash Flow	65.44B	77.54B	149.66B	165.40B	89.44B	188.60B
Operating Cash Flow	163.51B	163.51B	182.59B	199.75B	142.76B	231.79B
Investing Cash Flow	-185.41B	-185.41B	-21.82B	-135.51B	-198.59B	-244.19B
Financing Cash Flow	-76.22B	-76.22B	-108.24B	-65.62B	-64.45B	30.08B

Alibaba Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BABA, the sentiment is Positive. The current price of 138.55 is above the 20-day moving average (MA) of 122.82, above the 50-day MA of 118.09, and above the 200-day MA of 110.83, indicating a bullish trend. The MACD of 3.14 indicates Negative momentum. The RSI at 70.72 is Negative, neither overbought nor oversold. The STOCH value of 70.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BABA.

Alibaba Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMZN	81 Outperform	$2.44T	34.95	24.77%	―	10.87%	56.13%
PDD	79 Outperform	$166.96B	13.11	31.78%	―	20.09%	-1.83%
BABA	78 Outperform	$283.01B	15.26	15.22%	1.43%	5.48%	128.65%
MELI	72 Outperform	$125.37B	61.07	43.83%	―	38.27%	46.21%
JD	70 Outperform	$48.33B	8.77	17.26%	3.10%	14.61%	32.78%
CPNG	62 Neutral	$52.10B	143.91	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%