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Title: Alibaba Group (BABA) Stock: Why 16 Analysts Are Betting on This Undervalued Tech Giant
Alibaba Group, one of the world’s largest e-commerce platforms, is garnering significant attention from analysts and investors alike. A staggering 16 analysts have issued “buy” recommendations for BABA stock, citing a range of compelling factors.
One key area of focus is Alibaba’s aggressive AI strategy. The company has been quietly building its AI capabilities through a series of strategic investments and acquisitions. This move positions the tech giant to capitalize on the rapidly growing demand for artificial intelligence solutions across various industries.
To further accelerate its AI initiatives, Alibaba has announced plans to launch Qwen 3, its flagship AI model, later this month. Additionally, the company has upgraded its Quark AI assistant with advanced capabilities such as chatbot functions, reasoning tools, and task execution features. These enhancements are expected to significantly boost the platform’s appeal among developers.
Moreover, Alibaba is adopting a “price-competitive” strategy to attract global talent and businesses. The tech giant has introduced developer-focused tools at aggressively low prices, including a business intelligence platform for just $1 per year. This bold move aims to disrupt traditional pricing models in the industry and establish Alibaba as a go-to solution provider.
Another significant factor driving the bullish sentiment is Alibaba’s reduced exposure to US tariffs. As most of its operations remain within China, the company has limited financial risks related to trade tensions. However, it’s not entirely immune to the impacts; Ju noted that the company is being cautious and carefully managing its US investments by shifting focus towards local supply chains.
Analyst Joyce Ju maintains a positive outlook on Alibaba, citing an attractive valuation compared to growth prospects. She believes AI-driven trends will continue to boost the company’s performance, along with potential consumer stimulus measures in China. Furthermore, she highlights Alibaba’s ability to adapt and evolve in response to changing market conditions, including the ongoing US-China trade tensions.
The broader Wall Street view on Alibaba shares remains strongly positive, as reflected by a “Strong Buy” consensus rating based on 16 Buy recommendations over the past three months. The average price target among these analysts stands at $167.17, suggesting potential upside of approximately 68% from current levels.
As Alibaba prepares to release its quarterly results next month, investors will be closely watching key metrics such as cloud revenue growth and AI adoption rates among customers. Additionally, any updates on the company’s strategy for balancing its global AI expansion with international trade dynamics will be crucial in determining the stock’s short-term performance.
Despite ongoing concerns surrounding the US-China trade relationship, Alibaba is well-positioned to continue delivering strong returns for investors in the long term. As the company continues to prioritize AI-driven growth and aggressively pursue price-sensitive deals, it seems that 16 analysts are betting on this undervalued tech giant becoming a major player in the industry.
**Article Link:**
Source: https://coincentral.com/alibaba-group-baba-stock-why-16-analysts-are-betting-on-this-undervalued-tech-giant/
