Chinese stocks have gained much attention in recent months due to the U.S.-China trade war, the jitters caused in the U.S. tech world by the emergence of Chinese start-up DeepSeek AI, and expectations of improvement in the performance of Chinese companies due to the government’s stimulus measures. Amid this scenario, we used TipRanks’ Stock Comparison Tool to place JD.com (JD), Alibaba (BABA), and NetEase (NTES) against each other to find the “Strong Buy” Chinese stock having the highest upside potential, according to Wall Street analysts.
JD.com (NASDAQ:JD)
JD.com stock has risen over 13% year-to-date, as investors expect the e-commerce retailer’s performance to improve due to the Chinese government’s stimulus measures and the company’s discount offers. Notably, JD.com has been offering significant discounts to fight competition from Alibaba and low-cost players like PDD Holdings’ (PDD) Pinduoduo.
Despite macro challenges and fierce competition, JD.com reported a 5.1% rise in its Q3 2024 revenue and a 48% jump in its net profit. While revenue lagged expectations, net profit surpassed estimates. The company attributed its performance to improving consumer sentiment and China’s trade-in program, under which consumers can trade in their old products for new purchases and receive discounts or subsidies.
JD.com is scheduled to announce its fourth-quarter results on March 6. The Q4 2024 results are expected to reflect the benefits from the Chinese government’s stimulus measures on the company’s home appliances, electronics, and general merchandise categories.
Is JD.com Stock a Good Buy?
Heading into Q4 2024 results, Bank of America analyst Joyce Ju reiterated a Buy rating on JD.com stock with a price target of $48. The analyst expects the company to report solid Q4 2024 results, backed by government subsidies and promotional events. Ju expects JD.com’s Q4 revenue to grow by 10.1% year over year, driven by strength in electronics and home appliances due to the government’s trade-in subsidy program and successful Singles Day promotions. He anticipates that the company’s Q4 2024 adjusted net profit will grow by 18%, supported by enhanced gross margin.
Further, Ju expects China’s extended government stimulus programs to sustain the momentum in JD’s growth into 2025, mainly in its dominant electronics and home appliances businesses.
With seven Buys versus one Hold recommendation, JD.com stock earns a Strong Buy consensus rating. The average JD stock price target of $49.53 implies about 26% upside potential from current levels.
Alibaba (NYSE:BABA)
Alibaba stock has surged about 52% so far in 2025, thanks to AI tailwinds and improving operating performance. Last month, the e-commerce and cloud computing giant released an AI model (Qwen2.5 Max) that it claimed to be better than DeepSeek AI’s offering. Further, investors cheered the news that the U.S. tech giant Apple (AAPL) will be collaborating with Alibaba to introduce AI features in iPhones in China.
The company also impressed investors with its December quarter results, which saw its domestic e-commerce business delivering encouraging growth and the Cloud Intelligence unit displaying strength. Notably, Alibaba’s AI-related product revenue posted triple-digit growth for the sixth consecutive quarter.
However, on February 24, Alibaba’s U.S.-listed stock plunged by over 10% after the company announced investments worth more than $50 billion in AI infrastructure and cloud computing over the next three years. BABA stock fell as investors are concerned about the massive investments, especially amid DeepSeek’s claims of building its AI model with significantly less power and costs compared to rivals.
Is BABA Stock a Good Buy Right Now?
On February 23, Morgan Stanley analyst Gary Yu upgraded Alibaba stock to Buy from Hold and boosted the price target to $180 from $100. The analyst believes that Alibaba is well-positioned for continued leadership in the rapidly growing AI cloud market, with its cloud revenue set to double in three years.
Yu added that Alibaba is the largest hyperscaler with superior technology and a highly ranked open-sourced large language model (LLM), with the company’s significant capex expected to boost its AI cloud opportunity. While the analyst didn’t expect a surge in Alibaba’s AI-driven cloud demand following the DeepSeek news in January, he now sees an acceleration in cloud revenue growth.
Overall, Wall Street has a Strong Buy consensus rating on TipRanks, backed by 13 Buys versus just one Hold rating. The average BABA stock price target of $158.76 implies about 23% upside potential from current levels.
NetEase (NASDAQ:NTES)
Chinese gaming and internet services company NetEase reported better-than-expected Q4 2024 earnings last week. The company returned to profit growth, with net profit rising 33%. However, NetEase’s Q4 revenue declined 1.4% due to weakness in non-game revenues and slightly missed expectations.
Looking ahead, NetEase’s recently released titles like Marvel Rivals and Where Winds Meet, the relaunch of Blizzard-licensed “Overwatch” earlier this month, and upcoming titles like Fragpunk, Destiny: Rising, and MARVEL Mystic Mayhem are expected to drive the gaming business in 2025.
Further, NetEase is trying to boost its gaming revenue by expanding its international footprint. Additionally, the company is strengthening its diversified business model, by pursuing growth in attractive areas like the Cloud Music business and education platform Youdao.
What Is the Price Target for NetEase Stock?
In reaction to the Q4 2024 print, CMB International analyst Saiyi He reiterated a Buy rating on NetEase stock with a price target of $125.50. The analyst noted the company’s solid performance in the gaming sector, mainly the growth in PC games. He highlighted the momentum triggered by the return of Blizzard titles in China and the success of new games like Marvel Rivals and Where Winds Meet.
Looking ahead, the five-star analyst expects NetEase’s gaming portfolio to be bolstered by the expected release of several titles in 2025. Further, he expects the company’s operational efficiency to be supported by effective cost control efforts.
Overall, Wall Street has a Strong Buy consensus rating on NetEase stock based on eight Buys and two Hold ratings. At $116.25, the average NTES stock price target indicates 17.5% upside potential. NTES stock has risen 11% so far this year.
Conclusion
Wall Street is bullish on the prospects of JD.com, Alibaba, and NetEase stocks. Currently, analysts see a slightly higher upside potential in JD stock. If the e-commerce retailer posts upbeat Q4 results on March 6 and issues a solid outlook, it might further drive JD stock higher. Analysts are upbeat about JD.com stock due to China’s stimulus measures and improving consumer sentiment.