Alibaba’s Cloud & Quick Commerce Surge: BofA Predicts $152 Stock Target Amid Growth Momentum
Alibaba's dual engines roar as cloud and quick commerce divisions fuel unprecedented growth trajectory.
BofA's Bullish Case
Bank of America analysts project a $152 price target, betting big on Alibaba's strategic positioning in high-growth sectors. The cloud division's expansion coupled with explosive quick commerce performance creates a perfect storm for valuation upside.
Cloud Computing Catalyst
Alibaba Cloud continues eating market share, leveraging its first-mover advantage in China's cloud infrastructure race. The unit's scaling capabilities position it as the backbone of Asia's digital transformation.
Quick Commerce Revolution
Same-day delivery services smash growth records as consumer behavior shifts toward instant gratification economics. This hyper-growth segment demonstrates Alibaba's ability to capitalize on emerging retail trends.
Market Skepticism Meets Momentum
While traditional analysts debate P/E ratios, BofA's target acknowledges that in today's market, sometimes growth stories outweigh spreadsheet fundamentals—until they don't.
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BofA Sees 13% Upside in BABA Stock
The 4-star analyst emphasized that Alibaba’s June quarter results came in mostly as expected, with revenue rising 2% year-over-year to RMB247.7 billion. The clear highlight was cloud computing, which grew 26% year-over-year, faster than the 18% growth last quarter and above Wall Street’s 20–25% forecast. Ju said the strength came from a surge in AI-related sales, strong demand from outside clients, and higher spending on cloud and AI. She believes cloud growth will keep picking up as Alibaba moves ahead with its three-year RMB 380 billion investment plan.
Ju also pointed to solid trends in CMR, helped by a stronger take rate. Management expects CMR to stay in the high single digits this year, supported by more use of its QZT AI tool and strong traffic from Taobao Instant Commerce, which saw daily active users jump 20% year-over-year in August.
Meanwhile, quick commerce emerged as a major growth driver, with average daily orders climbing to 80 million in August, up from less than 25 million in April. Losses remain in this area, but the company plans to cut those losses by half in the December quarter. Based on this, Ju raised revenue estimates for FY26–FY28, while trimming near-term profit due to ongoing spending.
Overall, Ju sees Alibaba as a winner in both AI-driven cloud services and digital retail.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain bullish about Alibaba’s stock trajectory. With 14 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $159.92 implies about 18.46% upside potential from current levels.
