Alibaba (BABA) Reinvents Itself as AI + Everyday Consumption App, Analyst Says

Alibaba Group Holding Limited (NYSE:BABA) is a Must-Watch AI Stocks on Wall Street. On September 1, Goldman Sachs analyst Ronald Keung raised the price target on the stock to $163.00 (from $147.00) while maintaining a Buy rating.

The firm said that Alibaba may lose more money than previously anticipated in its quick commerce business in the September quarter. However, they believe these losses will halve into the December quarter as the company shifts its focus to high quality users, reduce subsidies, and improve rider efficiency.

The firm revised its profit forecasts due to bigger quick commerce losses, which was partly offset by international ecommerce. It also lifted its SOTP-based 12-month target prices to US$163/HK$158 (from US$147/HK$142) on higher cloud valuation and lowered SOTP discount.

The firm further emphasized Alibaba’s renewed AI-driven story line, positioning itself as an AI + everyday consumption app as well as AI + Cloud hyperscaler.

“We revise our FY26E-FY28E adj. net profit by -9%~ to +2% on larger quick commerce loss, part offset by faster int’l eCommerce turnaround pace and lift our SOTP-based 12-month target prices to US$163/HK$158 (from US$147/HK$142) on higher cloud valuation and lowered SOTP discount to 15% (vs. prior 20%, given streamlined core businesses, now in-line with our transaction platforms SOTP assumptions), with Alibaba’s renewed AI-driven story-line around becoming an AI + everyday consumption app (Taobao + Amap) and AI + Cloud hyperscaler.”

Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.

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