Shares of Hong Kong-listed Alibaba Group Holding Limited (HK:9988) are preparing for a possible rebound in 2025, supported by its growth in its core segments like Cloud Intelligence and E-commerce. The stock has risen by over 9% in the past six months, showing some signs of recovery. Moving forward, analysts remain optimistic about Alibaba Group, citing its dominant position in the e-commerce sector and a diversified business model. Overall, the stock holds a Strong Buy rating on TipRanks, with nearly 60% upside potential.
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Alibaba is a technology company best known for its online marketplace. Over the years, it has expanded its portfolio to include cloud computing, digital entertainment, logistics, and financial services.
Key Drivers Behind Alibaba’s Stock Growth
One of the key growth drivers for Alibaba is its cloud business. Launched in 2009, Alibaba Cloud has grown to become a major provider of cloud infrastructure and services across more than 200 countries. In its September quarter, Cloud Intelligence Group’s revenue grew 7% year-over-year to ¥29.6 billion. Meanwhile, its revenue from AI-related products increased by triple digits year-over-year for the fifth quarter in a row.
Along with cloud services, Alibaba’s AIDC (Alibaba International Digital Commerce segment) showed strong growth, with a 29% increase in revenue for the September quarter. This was mainly fueled by the expansion of cross-border business. However, the potential trade tensions between the U.S. and China bring uncertainty and risk for the company.
Moving ahead, the company is making continued investments in its cloud and AI infrastructure to tap the growing demand. Additionally, Alibaba’s diversified business model helps protect against fluctuations in consumer spending in China, while capturing growth from overseas markets and enterprise clients.
Overall, Alibaba’s long-term outlook remains positive, presenting potential opportunities for investors who are prepared to navigate short-term uncertainties.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ Bulls Say, Bears Say tool offers a glimpse into analysts’ different views on a stock, providing valuable insights for investors.
Bulls are optimistic about Alibaba’s strong cloud revenue growth, fueled by demand for public cloud and AI products. They also highlight its dominant e-commerce position and international commerce platforms like AliExpress and Lazada driving significant revenue.
On the other hand, bears are wary of Alibaba’s financial performance, as its earnings are expected to face pressure in the short term due to investments in new initiatives. Additionally, strong competition from companies like PDD Holdings (PDD) is impacting Alibaba’s market share.
Is Alibaba Good Stock to Buy Now?
On TipRanks, 9988 stock has received a Strong Buy rating from analysts, based on six Buy recommendations. The Alibaba share price target is HK$131.3, which implies a growth rate of 58.3% on the current trading price.
