Alibaba Stock Surges as Analysts Raise Targets, AI Investments Boost Confidence
Alibaba's stock surged over four percent in domestic trading, nearing its year-to-date peak. This boost follows positive analyst reports and strategic investments in AI.
Morningstar analyst Brian Colello led the charge, hiking the fair value of Alibaba's ADRs by 49 percent to $267. This significant increase reflects the company's robust growth momentum, particularly in its cloud and iCloud segment.
Morgan Stanley also upped its growth forecasts for Alibaba's cloud segment, predicting a 32 percent rise in fiscal year 2026 and 40 percent in 2027. The investment bank further sweetened the deal by raising its target price for Alibaba's ADRs by 21 percent to $200.
Alibaba's confidence in its AI capabilities was evident at its recent developer conference. The company announced expanded AI investments and a new partnership with Nvidia, further cementing its position in the tech landscape.
Alibaba's stock rally, fueled by analyst upgrades and AI investments, has put the company back on track to hit its year-to-date high. With positive forecasts and strategic partnerships, Alibaba's future in the cloud and iCloud segments looks promising.
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