Alibaba Stock Rises to 33rd in Trading Volume on AI Cloud Push and Banma Spin-off Plan

Alibaba Group (BABA) rose 1.15% on August 25, with a trading volume of $1.61 billion, ranking 33rd in the market. The stock’s performance reflects ongoing focus on its AI-driven cloud business and strategic restructuring efforts.

Analysts project strong Q1 FY26 earnings, forecasting $2.06 per share on $35.35 billion in revenue. A key catalyst is Alibaba’s planned spin-off of its autonomous driving unit, Banma, via a Hong Kong IPO. Post-IPO, Alibaba’s stake in Banma will drop to 30% from 44.7%, enhancing capital efficiency and allowing the company to prioritize core growth areas like cloud and AI. The move also aligns with broader industry trends in autonomous technology investment.

Despite bullish sentiment—92% of analysts maintain a positive outlook—concerns persist over margin pressures. Increased spending in competitive sectors such as food delivery and quick retail has led to downward revisions in price targets. Mizuho analyst Wei Fang recently cut his price target to $149 from $160, citing regulatory uncertainty and intensifying market competition. However, the stock remains rated a “Strong Buy” with an average target of $148.55, implying over 20% upside from current levels.

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