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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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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