FMP
Nov 14, 2024(Last modified: Nov 15, 2024)
Alibaba Group Holding Limited (NYSE:BABA) is a significant force in the technology and e-commerce industries, offering a variety of services and platforms that serve both local and global markets. The company operates through multiple segments, such as China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. Some of its popular platforms include Taobao Marketplace, Tmall, Alimama, 1688.com, Alibaba.com, AliExpress, and Lazada.
The consensus price target for Alibaba's stock has shown some interesting trends over different periods. Last month, the average price target was $110, while last quarter it was slightly higher at $117.11. A year ago, the average price target was $109.24. These fluctuations suggest that analysts' expectations for Alibaba's stock have varied, possibly due to changing market conditions, company performance, or broader economic factors affecting investor sentiment.
Alibaba's upcoming Q2 2025 earnings report is anticipated to be a key event for investors. The company's AI-driven growth, international expansion, and strategic cloud pricing are expected to drive its performance, despite challenges in China. Analyst Jiong Shao from Barclays has set a price target of $170 for the stock, indicating potential upside and confidence in Alibaba's strategic direction and growth potential.
The potential undervaluation of Alibaba's stock is highlighted by Zacks, which focuses on the Zacks Rank system. This system uses earnings estimates and revisions to identify promising stocks, considering value, growth, and momentum trends. Alibaba's ability to diversify its revenue streams beyond its core China e-commerce business, particularly in its cloud services and international commerce segments, is a key area of focus for growth.
Despite recent declines in Alibaba's stock, along with JD.com and NIO, following China's $1.4 trillion stimulus package announcement, analysts remain optimistic. The stimulus package did not meet market expectations, leading to a drop in Hang Seng futures. However, Barclays analyst Jiong Shao's price target of $170 for Alibaba suggests confidence in the company's long-term prospects.
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