Is Alibaba (BABA) the Most Oversold Strong Buy-Rated Stock to Invest In Now?

Alibaba Group Holding Limited (NYSE:BABA) is one of the 9 Most Oversold Strong Buy-Rated Stocks to Invest In Now.

On June 25, 2026, Anthropic accused Alibaba Group Holding Limited (NYSE:BABA) of a large-scale effort to “illicitly” access its Claude artificial intelligence model, Bloomberg’s Maggie Eastland reported, citing a letter the AI startup sent to several U.S. senators and White House officials. Anthropic claimed that operators linked to Alibaba’s Qwen AI lab used thousands of fraudulent accounts to target Claude’s most prized capabilities, including software engineering and agentic reasoning.

On June 24, Daiwa lowered its price target on Alibaba to $175 from $200 and kept a Buy rating. Daiwa said China’s 2026 6.18 shopping festival “delivered a negative surprise,” with overall gross merchandise value up only 0.9% year-over-year versus 15% growth in 2025, according to Syntun. The firm said the data confirms a “weak” e-commerce consumption trend in China and cited a “tough” macro backdrop, tightening regulations, a scaled-back national trade-in program, and a high base as constraints on sector growth.

Alibaba Group Holding Ltd (NYSE:BABA), Alibaba homepage on a Ipad monitor screen, webiste, group, online

GongTo / Shutterstock.com

On June 12, Alibaba offered $1.5B for Chinese grocery delivery company Pupu, Bloomberg’s Cathy Chan reported, citing people familiar with the matter. The offer is more than double a competing $600M bid from Sun Art Retail and signals a competitive acquisition push in quick-commerce and grocery delivery. Alibaba’s bid came shortly after Meituan’s (MPNGF) $717M acquisition of Dingdong Fresh, the report noted.

Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses in the People’s Republic of 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 the cheapest AI stock.

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