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 GroupBABA--, 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 AmericaBAC-- 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.

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