From Yahoo Finance: 2025-05-21 13:20:00

On May 16, Benchmark reduced Alibaba’s price target from $190 to $176, maintaining a Buy rating. Analyst Fawne Jiang adjusted the target after Alibaba missed Q4 FY2025 earnings and revenue estimates, attributing it to weak performance in the AIDC division and outdated consensus estimates.

Despite the miss, Jiang remains optimistic about Alibaba’s core commerce and cloud computing segments, which saw 10% revenue and 26% EBITDA growth compared to a year ago. Alibaba’s Cloud revenue surged by 18% in Q4 FY2025, with AI-related product revenue growing by triple digits for the seventh consecutive quarter.

Alibaba has open-sourced over 200 models globally under the QN family, showcasing its dominance in AI technology. Jiang projects Customer Management Revenue (CMR) to outperform Gross Merchandise Value (GMV) growth through FY2026, driven by sustained take rate gains.

Alibaba Group Holding Limited (NYSE:BABA) is a prominent Chinese e-commerce platform with a significant share in cloud services and a growing presence in Gen AI technology. Despite potential growth, some AI stocks may offer greater returns with limited downside risk compared to BABA.



Read more at Yahoo Finance: Benchmark Maintains Buy Rating on Alibaba (BABA) Stock, Cuts PT