Prediction: Alibaba Stock May Be Entering a New Era

I'm putting a caller involvement successful the crushed connected Alibaba (NYSE:BABA) aft a messy but strategically important quarter. Alibaba is sacrificing near-term profitability to standard its AI and unreality franchise, and the marketplace is inactive digesting what that trade-off means. My read: the setup is constructive, adjacent if the header numbers look ugly.

Our 24/7 Wall St. terms people for Alibaba is $157.86 implicit the adjacent 12 months, implying 11.86% upside from $141.12. Our exemplary rates the banal a bargain with precocious confidence.

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24/7 Wall St. Price Target Summary

A Quarter That Reframed the Story

Alibaba reported fiscal Q4 2026 connected May 13, 2026. Revenue came successful astatine $35.28 billion, up 3% twelvemonth implicit year, with EPS of $0.09. Adjusted EBITA fell 84% to $740 cardinal and escaped currency travel swung to antagonistic $2.51 billion. The market's absorption was muted: shares closed astatine $141.12, down 3.22% connected the session.

Alibaba Cloud grew 38% to $6.04 billion, with outer gross accelerating to 40% growth. AI-related products present correspond 30% of outer unreality revenue, marking the eleventh consecutive 4th of triple-digit AI growth. Quick commerce (Taobao Instant Commerce and Ele.me) surged 57%. Shares are up 7.44% implicit the past period and 7.08% implicit the past year, though inactive 3.72% little twelvemonth to date.

The Case for $200+

Bulls person a credible roadmap. The Street's mean people sits astatine $188.98, with 31 Buy and 8 Strong Buy ratings. Our bull-case script points to $208.07 wrong 12 months. The drivers: Qwen LLM with 300 cardinal monthly progressive users, implicit 100,000 Zhenwu PPU AI chips deployed, and Alibaba Cloud holding 35.8% of China's AI unreality market.