Alibaba stock price forecast is supported by improving margins in logistics and digital media arms. Price targets from major brokers average $84, with JPMorgan noting a potential re-rating if profitability expands faster than expected. Overall, last month's gains were part of a broader momentum shift as investors seem to be moving back into Alibaba, after it was off-limits for several years due to the tech crackdown from Beijing and weak economic growth in China. The cloud intelligence division has been the most important engine of Alibaba’s turnaround. Cloud revenue grew 18% YoY in the last quarter , positioning the segment as a central driver of future margins. If BABA sustains 20%+ growth here, the stock will command higher multiples as institutional investors rotate back into Chinese tech. At the same time, Alibaba is aggressively embedding artificial intelligence across e-commerce, logistics, and payments, a move that has required heavy CapEx expansion of 168% YoY . That level of investment stands in stark contrast to global peers cutting capital expenditures. It signals Alibaba is betting on AI not only to defend market share against PDD and JD but also to capture efficiency and monetization opportunities across its 1.3 billion active customer base. Valuation in Alibaba stock price forecast shows PEG ratios returning to attractive levels, drawing both long-term investors and swing traders. Price movement could align more closely with sector-leading peers.
