Alibaba (BABA) Soars 7.19% on AI, Cloud Revenue Growth

On August 29, 2025, Alibaba's stock surged by 7.19% in pre-market trading, reflecting a significant bullish sentiment among investors.

Analysts have set an average price target of $159.67 for Alibaba Group, with some predicting a high of $180.00. This optimism is driven by the company's strong cloud revenue growth and sustained demand for AI products, as noted by Bank of America Securities' Joyce Ju.

Despite reduced buybacks, Alibaba's stock remains undervalued with a forward P/E of just 14x, suggesting strong upside potential. The company's robust AI-driven growth prospects and attractive valuation have led to a consensus price target of $150, implying over 20% upside from current levels.

Alibaba's recent financial performance, including an 18% increase in cloud revenue, has further bolstered investor confidence. The company's strategic focus on AI and cloud services positions it well to compete against global rivals, making it a compelling investment opportunity.