<div id="readability-page-1"><p>Alibaba (BABA) stock has gained more than 77% so far this year. After a strong 2025, the company heads into 2026 with a similar mix of challenges and strengths. While margin pressure remains in its core retail business, analysts continue to see cloud and AI as the main engines of growth in the year ahead. Wall Street remain bullish on Alibaba's long-term prospects, with forecasts pointing to more than 40% upside over the next twelve months.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <h2><strong>Cloud and AI Take a Bigger Role</strong></h2> <p>Cloud is taking on a bigger role at Alibaba. In the latest quarter, cloud revenue rose about 34% from a year ago, making it one of the company's fastest-growing areas. This growth is helping Alibaba depend less on its core online retail business.</p> <p>AI is also becoming more important. Alibaba's Qwen models have passed 600 million downloads, making them the most used open-source AI models worldwide. Qwen is now used more often than Meta Platforms' (META) Llama models, especially for tasks that require multiple languages.</p> <p>To support this work, Alibaba has pledged more than $50 billion over several years to build out its cloud and AI systems.</p> <h2><strong>E-Commerce Holds Steady, but China Risks Linger</strong></h2> <p>Alibaba's core e-commerce business remains stable, backed by its large network of online marketplaces, logistics services, and consumer apps. Recent earnings showed steady revenue trends, though profits continue to face pressure as the company spends on faster delivery, user growth, and AI development.</p> <p>At the same time, soft retail demand and slow economic growth in China have kept some investors cautious, weighing on Alibaba and other major Chinese tech stocks.</p> <h2><strong>What Analysts Are Watching Next</strong></h2> <p>Analysts see cloud and AI as the main areas to watch next year. They are looking for steady growth in cloud use, wider use of AI tools across the business, and better control of costs.</p> <p>Spending on AI may pressure margins in the short term. Even so, many analysts view that spending as necessary to support growth over the longer run.</p> <h2><strong>Is Alibaba Stock a Buy Now?</strong><strong></strong></h2> <p>Even with the risks, Wall Street remains constructive on the stock. Alibaba carries a Strong Buy consensus rating, based on 16 Buy ratings and one Hold over the past three months. The average BABA price target stands at $205.08, suggesting roughly 39% upside from current levels.</p></div>

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<p>Alibaba's stock has surged over 77% this year, with analysts predicting a further 40% upside in 2026. Despite margin pressures in retail, growth in cloud and AI is expected to drive performance. Cloud revenue rose 34% year-over-year, while AI models have seen significant adoption. Analysts remain optimistic, rating Alibaba as a Strong Buy with a price target of $205.08, indicating a potential 39% increase from current levels, despite concerns over China's economic conditions.</p>

- Alibaba (BABA) stock has experienced a 77% increase in 2025, despite facing margin pressures in its core retail business.  
- Analysts anticipate that cloud and AI will drive growth, with cloud revenue rising by 34% and significant investments planned for development.  
- Wall Street maintains a bullish outlook on Alibaba, with a Strong Buy consensus and a price target indicating a 39% potential upside.

Alibaba Stock Forecast 2026: Why Wall Street Predicts 40%+ Upside for BABA