Is Alibaba Stock a Buy Right Now?
Alibaba Group (NYSE: BABA) doesn't want to be known as just an e-commerce giant any longer. Throughout 2025, the Chinese company leaned into its ambitions to become a cloud and artificial intelligence leader. The most recent quarterly results, however, paint a complicated picture of a business that's thriving in some ways, but uncertain in others.
Alibaba's cloud intelligence line grew by 36% in this latest quarter compared to the same period last year. Overall, though, Alibaba reported a 66% year-over-year decline in net income. The steep drop is mostly attributed to a strategic pivot into technology investments, improved user experiences, and quick commerce.
The main question, however, is whether Alibaba is too late in its efforts to catch up as a leader in AI and cloud services. Yes, a 36% increase in its cloud business this past quarter is promising, but there's real concern regarding the e-commerce side. Most problematic is the 74% year-over-year decline in operating income. The compression in the company's profits is real, and it's making shareholders nervous.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
With 45 Buy predictions and not a single Sell prediction Alibaba Group Holding Ltd ADR is an absolute favorite of our community.
As a result the target price of 159 € shows a positive potential of 49.44% compared to the current price of 106.4 € for Alibaba Group Holding Ltd ADR.
