Strong Analyst Confidence in Alibaba Group Holding (BABA) Amid AI and Cloud Momentum

Alibaba Group Holding Limited (NYSE:BABA) is included in our list of the best stocks to buy right now.

Strong Analyst Confidence in Alibaba Group Holding (BABA) Amid AI and Cloud Momentum

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Alibaba Group Holding Limited (NYSE:BABA) enjoys strong investor confidence, with 85% of Wall Street analysts bullish on the stock as of January 12, 2026. The consensus price target of $196.99 implies a 31.50% upside.

On January 5, 2026, Alibaba Group Holding Limited (NYSE:BABA) unveiled its plans to offer AI-powered services for restaurants with its Amap app. With this offering, the company will enable businesses to generate 3D interior renderings by uploading videos or images. Using its visual WAN model, Alibaba Group Holding Limited (NYSE:BABA) will provide this feature at no cost for a limited time. This strategy will allow the company to compete more directly with Meituan in China’s food and dining sector. With this move, the company aims to extend its ecosystem beyond traditional e-commerce amid ongoing AI and cloud innovation.

Surrounding this update are nuanced Wall Street commentaries. On January 8, 2026, Morgan Stanley reiterated its ‘Overweight’ rating and reduced its price target from $200 to $180, citing a weaker outlook for core e-commerce amid high-consumption levels in the first half of 2027. This comes despite the strong cloud growth supporting the company’s ambitions. On the same day, Jefferies reiterated its ‘Buy’ rating while lowering its price target from $231 to $225. The firm cited strong performance in Quick Commerce and accelerating cloud revenue driven by AI demand. Thus, both firms reaffirm the company’s position as a leading AI enabler in China despite short-term pressure on traditional retail segments.

Alibaba Group Holding Limited (NYSE:BABA) focuses on developing technology infrastructure and digital platforms spanning commerce, cloud computing, local services, logistics, and AI solutions.

While we acknowledge the potential of BABA to grow, 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.

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Disclosure: None.