Alibaba’s (BABA) Latest Results Highlight Powerful Cloud Momentum and Solid E-Commerce Gains

Alibaba Group Holding Limited (NYSE:BABA) is one of the AI Stocks Making Headlines on Wall Street. On November 26, Benchmark reiterated its Buy rating on the stock with a $195.00 price target.

The rating affirmation follows BABA’s second-quarter fiscal 2026 results, with firm analysts highlighting robust growth across core e-commerce and cloud.

The Chinese ecommerce and technology company has reported strong topline performance despite margin pressure. Revenue grew 5% yoy to RMB 248B, topping estimates by an estimated 3B.

A close-up of a laptop displaying the company’s interactive podcasting platform.

Meanwhile, adjusted EBITDA missed due to continued investment in quick commerce. Alibaba’s E-commerce group grew 16% yoy while Cloud accelerated to 34% yoy, both beating expectations.

“F2Q26 First Look: solid growth upon investment. Revenue totaled RMB 248B, up 5% y/y, beating consensus by RMB ~3B. Adj. EBITDA was RMB 17B, missing consensus expectation of RMB 19B primarily driven by quick commerce investment. Specifically, revenue growth of Alibaba China E-commerce Group grew 16% y/y, ahead of expectation, Cloud accelerated to 34% y/y, above expectations; International Digital Commerce up 10% y/y, all others down 25% y/y.”

Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.

While we acknowledge the risk and potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks in Focus on Wall Street and 10 Hot AI Stocks to Keep on Your Radar

Disclosure: None.