Chinese e-commerce retailer and tech group Alibaba (BABA) stock soared 7.5% after billionaire hedge fund manager David Tepper revealed that his firm, Appaloosa Management, had boosted its stake to over $1 billion as of the end of 2024. The investment solidifies Alibaba as one of Tepper’s largest holdings, signaling his confidence in the e-commerce giant’s long-term potential. This surge adds to a 13% rally over the past five days, further reinforcing growing optimism around the stock.
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Adding to the bullish sentiment, JPMorgan analyst Alex Yao maintained an Overweight rating on Alibaba with a $125 price target, indicating room for further gains if the company successfully capitalizes on its AI advancements.
Positive Sentiment Is Rising, Says JPMorgan
At the same time, Wall Street is taking notice. On February 10, analyst Alex Yao reported a positive shift in investor sentiment after discussions with more than 100 investors. Yao noted that enthusiasm for Alibaba is on the rise, with many investors viewing its AI and cloud businesses as major growth drivers.
However, skepticism remains, as some investors are waiting for a clear roadmap on how the company plans to monetize these advancements.
AI and Cloud Remain Alibaba’s Key Catalysts
Alibaba has been ramping up its AI efforts. The company recently launched Qwen 2.5 Max, coinciding with the Lunar New Year. It claims that the model outperforms several existing AI systems, positioning it as a competitor to global tech leaders.
At the same time, Alibaba’s cloud division, which was once a key growth engine, continues to draw attention. Investors are watching to see if Alibaba can turn its AI and cloud advancements into steady revenue, especially as competition in these sectors heats up. The company is set to report its earnings on February 20, and investors will be looking for updates on these growth areas.
Is BABA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Alibaba is Strong Buy based on unanimous 11 Buy ratings over the last three months. At $121.38, the average BABA price target implies a 9.04% upside potential.
