Alibaba, the Chinese e-commerce powerhouse, has seen its stock price surge over 110% since the start of this year. This impressive growth has been fueled by significant advancements in its AI-driven cloud services and an increasing demand for quick delivery options. The company is intensifying its focus on artificial intelligence to enhance both its e-commerce and cloud segments. Alibaba is set to release its second-quarter earnings for 2026 next month, and analysts on Wall Street are largely optimistic, with projected average price targets indicating a potential stock increase of about 13%.
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Based on TipRanks’ analyst forecasts, Wall Street anticipates Alibaba will report earnings of $0.85 per share alongside revenue of around $34.36 billion for the second quarter.
Analysts remain optimistic about BABA’s Q2 revenue
As the earnings report approaches, Thomas Chong, a leading analyst from Jefferies, has reaffirmed his buy recommendation for Alibaba’s stock, setting a price target of $230. He describes the stock as a “top pick for 2026.” Chong believes that Alibaba’s growth trajectory is robust, bolstered by rising demand for AI and cloud technologies, as well as improvements in both e-commerce and instant delivery services.
Further, analysts project a year-over-year increase of about 30% in cloud revenue, thanks to the expanded application of GPU chips, rising needs for AI training, and a growing interest in bespoke data models across various sectors.
Similarly, Mizuho analyst Wei Huang has raised his price target for Alibaba from $159 to $195 while keeping an outperform rating. According to Mizuho’s analysis, there’s been a noticeable uptick in delivery orders during the summer quarter, driven by enhanced incentives. The firm also noted that Alibaba might capture additional market share in the banking sector with its comprehensive AI solutions and open-source approach.
Is now a good time to buy Alibaba stock?
Overall, analysts are quite positive about Alibaba’s stock performance. With 19 buy ratings compared to 2 hold ratings, BABA holds a consensus rating of “Strong Buy” at TipRanks. Moreover, with an average price target of $198.21, there’s an estimated upside potential of around 12.94% from its current price level.
