Susquehanna Touts Alibaba Group Holding Limited (BABA) Prospects on e-Commerce and Cloud Business Growth

Alibaba Group Holding Limited (NYSE:BABA) is one of billionaire David Tepper’s top stock picks heading into 2026. On December 2, analysts at Susquehanna reiterated a Positive rating and a $190 price target on the stock. The bullish stance comes on the company announcing better-than-expected performance in its core China e-commerce business.

While revenue exceeded expectations, driven by strong e-commerce sales, the company also continues to enjoy strong demand for its Artificial intelligence and cloud offerings. The research firm’s favorable rating is based on the company’s strong positioning in the e-commerce market, backed by substantial growth opportunities.

The company’s revenue in the first half of the year grew 3% to $69.6 billion as it benefited from adding artificial intelligence tools to its e-commerce suite. Demand for AI also continues to accelerate the company’s Cloud Intelligence Group business.

“In our consumption business, quick commerce continued to scale with significant improvement in unit economics and drove rapid growth in monthly active consumers on the Taobao app,” Eddie Wu, CEO of Alibaba Group, said.

Nevertheless, there are growing concerns that increased investments in AI Cloud and other areas, such as quick commerce, continue to put pressure on margins. Amid margin pressure, Susquehanna remains confident in the company’s long-term prospects, given its strong positioning in China’s e-commerce market.

Alibaba Group Holding Limited (NYSE:BABA) is a multinational tech giant focused on e-commerce, retail, cloud computing, and digital services. It aims to make it easy to do business anywhere by connecting buyers and sellers globally through platforms like Alibaba.com (B2B wholesale).

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