This Analyst Says Alibaba (BABA) Can 'Double in the Next 18 Months' - Here's Why

We recently published 10 Stocks Moving On Key Analyst Calls. Alibaba Group Holding Limited (NYSE:BABA) is one of the stocks analysts were recently talking about.

Jeff deGraaf from Renaissance Macro said in a recent program on CNBC that Alibaba Group (NYSE:BABA) stock could double in the next 18 months.

“I think it can double in the next 18 months. So, I think this is just the beginning of a huge, huge move that goes back.”

The analyst said the market started believing China was “uninvestible” when the overall sentiment declined. However, he believes Chinese tech stocks are performing really well and have more room to run.

“Those concerns or that narrative that China’s uninvestable really started closer to the bottom than the top, right? People didn’t worry about it when they were making money. And I think that’s one of the dangers is that you can create a narrative to kind of fit what’s happened to price. And I’m afraid that that’s what’s going to happen here is that, you know, these stocks will double or maybe even better and suddenly people won’t care about the is it investable because they’ve missed out on it. So I think that that’s a healthy skepticism and we actually view that in light of the charts as just another reason why these things can move and be pretty substantial from here.”

Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2025 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) was down 12.8%. Bear in mind, this comes off a stunning 55.3% March quarter return. Alibaba reported full year results, and by all accounts they were pretty good. Market chatter suggests some were disappointed by the Cloud revenue, but with 18% growth over the last year, we are not complaining. We liked the continuation of share buybacks, noting that for the year ended 31 March 2025, it bought back over 5% of its shares. Our Alibaba holding accounts for 3.3% of the Fund. We wrote last quarter that we were closely monitoring the position (hinting toward selling). We chose not to act, largely because we see it as one of the cheaper and most direct ways for the Fund to benefit from AI initiatives and Cloud infrastructure growth, and at the same time it provides geographic and economic diversity.”

While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.