Alibaba (BABA) Stock Poised for 40% Surge – Analysts Bullish on E-Commerce Giant

Wall Street''s crystal-ball gazers see green lights ahead for Alibaba. The Chinese tech titan''s stock (NYSE: BABA) could rally nearly 40% from current levels—if you believe the suits with Bloomberg terminals.

Bull Case: E-Commerce Juggernaut Awakens

After years of regulatory beatdowns, BABA''s core commerce division shows signs of renewed growth. Cloud computing margins are improving faster than a Shanghai high-frequency trader.

Bear Trap or Golden Opportunity?

Short sellers got burned last quarter when revenue topped estimates. Now institutional investors are piling back in—because nothing moves markets like FOMO and algorithmic herd mentality.

One analyst quipped: ''At these valuations, even Jack Ma might consider buying back in... if he weren''t busy playing golf.'' The street''s consensus? This dragon still has fire.

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Alibaba’s Q4 Earnings Show AI Strength

Alibaba recently reported its Q4 results for Fiscal 2025, which came in a bit below what analysts had hoped for. Still, there were signs of solid growth, especially in cloud and AI.

Cloud revenue jumped 18% year-over-year to RMB30.1 billion, supported by robust growth in AI-related product sales. While the company didn’t specify its AI revenue, it said that AI-related product revenue saw triple-digit growth for the seventh consecutive quarter.

Meanwhile, sales from the Taobao and Tmall Group (TTG) rosein Q4. Also, revenue from customer management services—which includes ads and other tools for sellers—rose, showing stronger merchant demand.

Top Analyst Remains Positive on Alibaba’s Future

Last week, Macquarie analyst Ellie Jiang kept her Outperform rating and $187.50 price target on Alibaba stock. After a recent visit to the company’s office, the top analyst expressed strong confidence in Alibaba’s future growth prospects.

Jiang pointed out that while the company is lowering prices to stay competitive in the instant delivery space, this short-term MOVE is part of a broader plan to drive growth. She expects higher ad sales and better merchant services to support profits going forward.

On the tech front, Jiang highlighted rising demand for Alibaba’s AI tools, especially from large firms. This, she believes, will help lift cloud revenue in the coming quarters. She also noted that Alibaba’s three-year AI investment plan remains on track, which reflects the company’s steady focus on long-term growth in cloud and AI.

Is Alibaba Stock a Good Buy Right Now?

Analysts remain highly bullish about Alibaba’s stock trajectory. With 12 unanimous Buy ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $166 implies 37.95% upside potential from current levels.