1. Alibaba Group Holding Limited (NYSE:BABA)
Upside Potential: 73.34%
On July 8, Morgan Stanley lowered its price target on Alibaba Group Holding Limited (NYSE:BABA) to $180 from $190 while maintaining an Overweight rating on the shares. Despite the target reduction, the firm remains optimistic regarding Alibaba’s long-term growth prospects, particularly within its cloud computing business. Morgan Stanley expects cloud revenue acceleration to exceed market expectations while forecasting continued margin expansion across key business segments. The firm believes Alibaba’s investments in artificial intelligence and cloud infrastructure position the company to capitalize on growing enterprise demand for digital transformation and advanced computing services.
Earlier, on June 24, Daiwa lowered its price target on Alibaba Group Holding Limited (NYSE:BABA) to $175 from $200 while maintaining a Buy rating. The firm cited disappointing results from China’s 2026 6.18 shopping festival, where overall gross merchandise value growth slowed significantly compared to the previous year. Daiwa pointed to a challenging macroeconomic backdrop, softer consumer spending trends, tighter regulations, and reduced support from national trade-in programs as factors weighing on the broader e-commerce sector. Despite these headwinds, the firm continues to recognize Alibaba’s strong market position and attractive valuation relative to its long-term growth opportunities.
Founded in 1999 and headquartered in Hangzhou, China, Alibaba Group Holding Limited (NYSE:BABA) is a global technology and e-commerce leader operating online retail marketplaces, digital payment ecosystems, logistics networks, cloud computing platforms, and artificial intelligence services. The company serves consumers, merchants, enterprises, and governments across China and international markets through a diversified portfolio of technology-driven businesses.
While we acknowledge the potential of BABA as the best strong buy stock according to analysts, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Most Promising Hydrogen and Fuel Cell Stocks According to Analysts and 10 Stocks That Could Double Over the Next 2 Years.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
