OTC:BABA

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Alibaba Stock in Focus as Bernstein Reiterates Outperform Rating

Alibaba Group (NYSE: BABA) received continued support from Bernstein, which reiterated its *Outperform* rating on the Chinese technology and e-commerce giant.

Bernstein maintained a *$165 price target* for Alibaba. With BABA trading around *$113.10*, the target implies approximately *46% upside* from current levels.

The bullish stance comes as Alibaba remains one of China’s largest internet companies, with major positions across e-commerce, cloud computing, logistics and digital services. Its cloud business is particularly important to the longer-term investment case as demand for artificial intelligence infrastructure and enterprise AI services expands in China.

Alibaba has been increasing its focus on AI and cloud computing while defending the competitive position of its core Taobao and Tmall e-commerce platforms. These businesses give the company exposure to both a potential recovery in Chinese consumer spending and longer-term AI-related growth.

Bernstein’s reiterated Outperform rating indicates continued confidence in Alibaba’s prospects. With the shares trading substantially below the firm’s $165 target, the rating suggests the analyst sees considerable potential for appreciation from current levels.
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Author
WS Investor 09-07-26
Alibaba Stock Falls 3% as Profit Slumps Despite Strong AI Cloud Growth

Alibaba Group (NYSE: BABA) shares fell about 3% Thursday after the company reported sharply lower quarterly earnings and heavy AI infrastructure spending, overshadowing strong revenue growth from its cloud business.

Profit Falls Sharply

June-quarter revenue increased 9% year over year to RMB268.95 billion. However, income from operations plunged 57%, while net income dropped 75% to RMB10.44 billion. Non-GAAP net income declined 38%, and non-GAAP diluted earnings per ADS fell 42% to RMB8.52.

Free cash flow was negative RMB44.67 billion, compared with negative RMB18.82 billion a year earlier, mainly due to increased cloud infrastructure spending.

AI Cloud Growth Remains a Major Positive

Alibaba's AI Cloud and Compute Services revenue reached RMB48.44 billion, with both total and external customer revenue growing 45%. AI-related product revenue reached RMB12.38 billion and posted triple-digit growth for the 12th consecutive quarter.

However, that growth requires substantial investment. Capital expenditures surged 75% to RMB67.68 billion as Alibaba expanded AI infrastructure and computing capacity.

Alibaba's 3% decline therefore appears primarily tied to the steep drop in earnings and heavier cash outflows. Strong AI and cloud growth remains encouraging, but investors appear concerned about the near-term cost of funding that expansion.
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Author
European Investor 08-20-26
Alibaba Surges 6% as Cloud AI Momentum Overwhelms Profit Compression

May 13, 2026 | NYSE: BABA

Alibaba is jumping 6% today after a quarter that presents two very different stories simultaneously — collapsing near-term profitability and accelerating AI-driven cloud growth — with the market firmly choosing to focus on the latter.

Headline revenue of RMB243.4 billion (US$35.3 billion) grew just 3% year-on-year, but that figure is distorted by the disposal of Sun Art and Intime. On a like-for-like basis, stripping out those divested businesses, revenue grew 11% — a meaningfully healthier picture. The standout segment is Cloud Intelligence Group, which grew 38% to RMB41.6 billion, with external customer revenue accelerating to 40% growth. AI-related product revenue delivered its eleventh consecutive quarter of triple-digit year-on-year growth, now accounting for 30% of cloud external revenue and reaching RMB8.97 billion in the quarter alone. Cloud adjusted EBITA jumped 57% to RMB3.8 billion. This is the number driving today's rally.

The profitability story elsewhere is far less flattering. Consolidated adjusted EBITA collapsed 84% to RMB5.1 billion from RMB32.6 billion a year ago. China E-commerce Group's adjusted EBITA fell 40% as the company poured investment into quick commerce, user experience, and AI integration. The "All Others" segment swung to a RMB21.2 billion adjusted EBITA loss from RMB3.4 billion a year ago, driven primarily by aggressive spending on Qwen app user acquisition and technology businesses. Non-GAAP net income was essentially zero at RMB86 million, down 100% year-on-year. Free cash flow swung to a RMB17.3 billion outflow from a RMB3.7 billion inflow a year ago.

GAAP net income of RMB23.5 billion looked strong on paper, up 96%, but this is almost entirely attributable to mark-to-market investment gains rather than operating performance — a point the market understands well enough to look past.

What is resonating with investors today is the strategic clarity. Alibaba is explicitly building a full-stack AI platform — models, cloud infrastructure, inference chips, and agentic applications — and the Cloud segment is beginning to demonstrate that this investment is converting into real revenue acceleration. The Qwen model family is gaining traction, the Model Studio customer base grew eight-fold year-on-year, and proprietary Zhenwu inference chips are now deployed at scale across cloud infrastructure with over 30 automakers using them for autonomous driving R&D.

Quick commerce is also showing signs of maturation. Revenue surged 57% to RMB20 billion, unit economics improved sequentially, and average order value is rising through order mix optimization. The international commerce business approached breakeven, with adjusted EBITA loss narrowing from RMB3.6 billion to just RMB138 million.

With US$75.5 billion in cash and liquid investments, Alibaba has the balance sheet to sustain this investment cycle. The board also declared an annual dividend of US$1.05 per ADS. Today's 6% move reflects investors beginning to price in the possibility that Alibaba's AI cloud bet is working — and that the current profit trough is the cost of building something much larger.
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Author
The Investor 05-13-26

Top Stock Market Highlights of the Week: Coliwoo IPO Filing, Cordlife Suspension and Electronic Arts Acquisition

From EA’s record buyout to Coliwoo’s IPO...

(thesmartinvestor.com.sg)
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Author
Global Finance News 10-04-25

Stock Price of Alibaba Jumps, FXI Outpaces S&P 500

BABA stock is rebounding with AI-driven momentum. Learn how the stock price of Alibaba impacts FXI and what the technicals signal for traders in 2025.

(articles.stockcharts.com)
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Author
Global Finance News 09-25-25

Top Stock Market Highlights: Alibaba Exits SingPost, MetaOptics IPO Surges 25%, DBS Hits Record S$53 - The Smart Investor

We look at the latest integrated healthcare project from an established healthcare player and a lawsuit brought about by a blue-chip company.

(thesmartinvestor.com.sg)
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Author
The Investor 09-13-25
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