<div id="readability-page-1"><p><strong>Alibaba Group</strong> (BABA) heads into 2026 as a major Chinese tech company, with a strong e-commerce base and a fast-growing cloud and AI business. After a strong run in 2025, the key question for investors is whether Alibaba can sustain growth amid a slowing Chinese economy. While pressure remains on its core e-commerce business, growth in cloud and AI services suggests stronger momentum heading into 2026.</p><h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock  hedge-fund level data  and  powerful investing tools  designed to help you make smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  so your portfolio is always positioned for maximum potential</li></ul> <h2><strong>BABA's Cloud and AI Efforts Fuel Growth</strong></h2> <p>Alibaba's cloud business is becoming a key growth driver as demand for cloud and AI services rises. In the latest quarter, cloud revenue grew about 34% year-over-year, outpacing other parts of the business and helping reduce reliance on e-commerce alone.</p> <p>Alibaba's AI efforts are also gaining traction. Its Qwen AI models have been downloaded more than 600 million times, making them the most widely used open models globally. Qwen is now used more often than Meta Platforms' (META) Llama models, especially for tasks that require multiple languages.</p> <p>To support this push, Alibaba has committed more than <strong>$50 billion</strong> over several years to expand its AI and cloud infrastructure, underscoring its focus on staying competitive with global peers.</p> <h2><strong>E-commerce Stabilizes, But Macro Risks Remain</strong><strong></strong></h2> <p>Alibaba's core e-commerce business remains stable, supported by its large network of online marketplaces, delivery services, and consumer apps. Recent earnings showed steady revenue, though profits remain under pressure as the company spends more on fast delivery, user growth, and AI.</p> <p>Still, slower retail spending in China and mixed economic data have weighed on the stock at times. These concerns have also affected other major Chinese tech names, as investors stay cautious about consumer demand.</p> <h2><strong>What Could Drive Alibaba Stock in 2026?</strong></h2> <p>Alibaba's cloud and AI businesses are expected to be the main drivers of growth in 2026. Continued cloud expansion, wider use of AI tools, and better control of costs will be key areas to watch. At the same time, higher spending on AI may weigh on margins in the near term, especially as China's consumer demand remains cautious.</p> <p>Even so, Wall Street remains optimistic. Analysts have a Strong Buy consensus rating on Alibaba stock based on 18 Buys and two Holds assigned in the past three months. Further, the average BABA stock price target is $201.33, implying a 34.86% upside from the current price.</p></div>

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<p>Alibaba's cloud and AI businesses are expected to drive growth in 2026, despite macroeconomic challenges. Analysts maintain a Strong Buy rating, with a price target suggesting a 34.86% upside. The company's focus on cloud expansion and AI tools, alongside cautious consumer demand, are key factors for investors.</p>

- Alibaba Group (BABA) enters 2026 as a prominent Chinese tech company, driven by a robust e-commerce base and growing cloud and AI sectors, despite challenges from a slowing economy.  
- Its cloud revenue increased by approximately 34% year-over-year, while its AI models have gained significant traction, reflecting strong growth potential.  
- While macroeconomic concerns may impact Alibaba's margins, analysts maintain a Strong Buy rating, projecting a price target of $201.33, indicating a potential upside of nearly 35%.

What's Ahead for Alibaba Stock (BABA) in 2026?