🙄Is Alibaba a Buy or Avoid Right Now???

Alibaba is back in the spotlight. Citigroup, Bank of America and Jefferies have upgraded their price targets within just 48 hours. Furthermore, Jefferies also named Alibaba its top pick among Chinese internet stocks. But does that mean the stock is truly a bargain right now?🤔

The bullish argument centres on artificial intelligence and cloud computing. Alibaba’s cloud revenue jumped 45% year-on-year in the June 2026 quarter, while overall revenue rose 9% to RMB 268.95 billion. Its Qwen AI models and growing cloud business could drive fresh growth going forward.🥰

However, the picture is not complete without looking at the risks.

Despite rising revenue, net profit dropped 75% compared to a year ago in the same quarter. Alibaba is also investing a massive RMB 380 billion into AI infrastructure and development from 2026 through 2029.

These investments may strengthen its market position but returns are never guaranteed.

At around US$111.37, HKD 108.60, the share price sits well below analyst targets ranging from US$178 to US$193. That implies considerable upside potential if those forecasts hold up.

Do remember that price targets are estimates, not guarantees and the actual valuation will depend on whether earnings can actually grow as expected.

🔷 Key risks include fierce competition, rising AI-related expenses, lower profitability, regulatory changes and geopolitical uncertainty.

🔷 For investors, the real questions are whether cloud growth will translate into solid profits, whether free cash flow can improve despite heavy AI spending, and whether the core e-commerce business can stay competitive.

🔷The verdict

Alibaba may look attractively priced and offer real growth potential, but it is not a guaranteed bargain.

Check out the full infographic for the bullish outlook, downside risks and key metrics to monitor.

For information only. Not financial or investment advice. Always conduct your own due diligence ☺️.