Jefferies Upbeat on Alibaba’s (BABA) AI Cloud and Instant Commerce Growth

Alibaba Group Holding Ltd (NYSE:BABA) is one of the top e-commerce stocks with long-term potential. On July 9, Jefferies reiterated its Buy rating on Alibaba (NYSE:BABA), highlighting strong cloud growth driven by enterprise demand for AI.

Jefferies Upbeat on Alibaba’s (BABA) AI Cloud and Instant Commerce Growth

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The firm expects Alibaba’s Cloud Intelligent Group to report a 23% year-over-year revenue increase—outpacing prior projections—while instant commerce platforms like Taobao and Eleme hit a daily order record of 80 million, signaling solid operational momentum.

Despite these gains, Jefferies flagged margin pressures due to heavy investment, forecasting a 15% decline in overall EBITA and a deeper 20% drop for the Taobao Tmall Group. Still, the firm remains optimistic about Alibaba’s medium-term prospects, noting that strategic spending could boost long-term growth, especially in cloud and instant commerce segments.

Alibaba Group Holding Ltd (NYSE:BABA) is a major player in e-commerce and cloud services, with a growing focus on artificial intelligence as part of its expanding tech ecosystem.

While we acknowledge the potential of Alibaba Group Holding Ltd (NYSE:BABA) as an investment, 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 the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.