Alibaba (BABA) stock jumped over 8% after China reaffirmed its 2025 economic growth target of 5%. This announcement comes despite ongoing trade tensions, weak consumer demand, and a struggling property sector.
Premier Li Qiang, China’s second-highest official, announced the 2025 growth target after confirming that the country achieved its 2024 GDP goal, expanding by 5%. As policymakers meet to outline future strategies, they are making domestic consumption a top priority to counter economic headwinds caused by trade barriers.
Increased Policy Support for Consumer Sectors
Citigroup strategists, led by Pierre Lau, highlighted that “boosting domestic consumption is back as the No. 1 work task,” signaling a policy shift that could benefit consumer-driven sectors like e-commerce.
This renewed focus may provide additional support for e-commerce companies such as Alibaba.
Strong Earnings and Analysts’ Confidence Add to the Ongoing Momentum
Alibaba’s recent rally is also fueled by strong Q3 FY 2025 earnings. The company posted 8% revenue growth to $38.38 billion, while diluted earnings per share of $2.79 beat the $2.67 consensus estimate.
Analysts remain bullish on Alibaba’s future. Recently, Benchmark Co. analyst Fawne Jiang raised her price target to $190, citing AI-driven growth, while Jefferies also increased its target, pointing to the cloud and AI as growth drivers. BofA projects Alibaba’s cloud intelligence revenue will grow over 30% year-over-year in FY26, further boosting investor confidence.
What This Means for Alibaba Stock
Alibaba’s stock has surged over 95% over the past year, reflecting strong earnings, positive analyst sentiment, and China’s renewed focus on domestic consumption. With AI and cloud technology as key growth areas, Alibaba appears poised for continued momentum.
Is Alibaba Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BABA stock based on 15 unanimous Buys assigned in the past three months, as indicated by the graphic below. The average BABA stock price target is $165.31, implying an upside potential of 17.22%.
