Alibaba’s AI Agent Strategy Gains Wall Street Backing as Qwen App Integrates Core Services
Alibaba Group Holding Limited (BABA) is receiving renewed analyst support as its Qwen AI app transitions from experimental to practical applications. Jefferies maintains a Buy rating with a $225 price target, citing Qwen's integration with Taobao, Alipay, Fliggy, and Amap—enabling complete task automation within a single interface.
The AI assistant now handles over 400 daily tasks for its 100 million monthly users, evolving from conversational AI to functional tool. Alibaba Cloud's 35.8% market share in AI Cloud revenue positions the company to capture 80% of incremental industry growth by 2026, according to analyst estimates.
Morgan Stanley's Overweight rating ($180 target) acknowledges near-term profit pressure from user acquisition costs, but emphasizes the strategic value of consumer AI adoption. The Street consensus suggests 19.15% upside potential with an average $203.66 price target.
