TSX higher on employment data
Investing.com - Bernstein analyst Robin Zhu raised the price target on Alibaba (NYSE:BABA) to $160.00 from $145.00 on Monday, while maintaining an Outperform rating on the stock. The new target aligns with broader analyst sentiment, as InvestingPro data shows analyst targets ranging from $131.22 to $186.97, with the stock currently trading at $135.
The price target increase follows Alibaba’s Q1 earnings report, which showed mixed results with an EBITA miss driven by increased food delivery spending, though this was overshadowed by positive operational metrics shared during the analyst call. With a market capitalization of $301.38B and a strong financial health score of "GOOD" according to InvestingPro, Alibaba continues to demonstrate resilience.
Management highlighted significant growth in its quick commerce business, reporting 300 million monthly customers and 80 million daily orders, alongside a tripling of daily active riders to over 2 million.
The company also reported 20% growth in Taobao daily active users, demonstrating strength across its ecosystem despite facing tougher comparable metrics for customer management revenue expected from September.
Bernstein’s analysis suggests Alibaba’s strategy involves leveraging its food delivery and quick commerce operations alongside AI capabilities to drive user engagement and cross-selling opportunities throughout its ecosystem.
In other recent news, Alibaba Group Holding Ltd reported a 10% year-over-year increase in revenue for the first quarter of 2025. The company has also made significant investments in artificial intelligence (AI) and cloud infrastructure, which are pivotal to its strategic initiatives in e-commerce and AI. Despite these advancements, Alibaba experienced a decrease in adjusted EBITDA and a free cash flow outflow. In response to Alibaba’s focus on AI, Goldman Sachs raised its price target for the company to $163, maintaining a Buy rating. The firm anticipates steeper losses in Alibaba’s quick commerce business for the September quarter. Similarly, JPMorgan increased its price target for Alibaba to $170, maintaining an Overweight rating. The bank believes that Alibaba’s food delivery and quick commerce operations have reached a scale that could lead to efficiency gains. These developments indicate Alibaba’s strategic focus on AI and quick commerce as key areas for growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.