The consensus among 16 Wall Street analysts covering (NYSE: BABA) stock is to Strong Buy BABA stock.
The average price target represents 54.83% Increase from the current price of $92.17. Alibaba's analyst rating consensus is a Strong Buy. This is based on the ratings of 14 Wall Streets Analysts.
Stock Price Forecast
The 51 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 139.37, with a high estimate of 185.42 and a low estimate of 72.45. The median estimate represents a +38.58% increase from the last price of 100.57.
Drawing a straightforward trend line price chart, BABA shares could reach $1,000 sometime in the first quarter of 2027 if it crawls along with the support level. Alibaba's P/E ratio would compress to a mere 11 times on a forward basis (FY2026) and this is based on the current depressed environment.
The forecasted Alibaba price at the end of 2023 is $108.27 - and the year to year change +23%. The rise from today to year-end: +29%. In the middle of 2023, we expect to see $98.94 per 1 Alibaba.
If its price-to-sales ratio holds steady, it could be worth about $750 billion by the beginning of 2025. But if the regulatory headwinds fade and Alibaba commands higher valuations again, its market cap could exceed $1 trillion by 2025.
Fair Value Estimate for Alibaba Stock
With its 5-star rating, we believe Alibaba's stock is undervalued. We assume a revenue compound annual growth rate of 7% for the next 10 years.
According to the Traders Union long-term price forecast Alibaba (BABA) can reach $127.79 by 2025, $179.84 by 2030, $236.37 by 2034.
Historical daily share price chart and data for Alibaba since 2014 adjusted for splits and dividends. The latest closing stock price for Alibaba as of July 28, 2023 is 100.55. The all-time high Alibaba stock closing price was 317.14 on October 27, 2020.
Analysts expect Alibaba's revenue to grow at a CAGR of 9% from fiscal 2023 to 2025, and for its net income to increase at a CAGR of 30% as it spins off more of its subsidiaries and reins in its spending.
BABA does not currently pay a dividend.
In BABA's case, the stock would likely be tradeable, since it has a large market cap and already has an OTC ticker (OTCPK:BABAF). If BABA were delisted and you persisted in holding it until the bitter end, your broker would roll you over to the OTC shares, allowing you to trade them that way.
Alibaba stock has come under pressure amid worries of a Chinese economic slowdown. Alibaba and other Chinese tech stocks were weaker Tuesday amid increasing fears of an economic slowdown in China.
Increased regulatory scrutiny has weighed on Alibaba and other Chinese stocks for the past couple of years. Besides a strict regulatory environment, Chinese stocks have also been dealing with a slowing economy. In April 2020, China regulators fined Alibaba $2.8 billion after an antimonopoly probe.
Alibaba.com is generally a safe marketplace for online businesses. However, you need to understand that Alibaba.com is just a B2B platform and not a supplier — it is a platform where buyers and suppliers meet. So, while you can trust that Alibaba.com is legit, you also have to ensure that the buyer/seller is reliable.
Valuation & Word on Wall Street
Alibaba stock is relatively cheap, trading at 21.34x P/E TTM basis as of today, trading well below the peer group; we believe the stock is undervalued for the growth prospects present.
Alibaba is the largest eCommerce retailer in the world in terms of gross merchandise value. It generated GMV of $1.2 trillion in 2020 while Amazon generated $575 billion. But Amazon generates more revenues, bringing in $469.8 billion in 2021 in revenues (for the 12 month period ending December 31st, 2021).
Alibaba shares rise after Chinese regulators fine Ant Group, ending regulatory uncertainty. Alibaba's Hong Kong-listed shares rose amid hopes that the yearslong scrutiny of its financial arm Ant Group is coming to an end.
Summary. Alibaba dominates the Chinese retail e-commerce market and is expected to continue its growth due to strategic acquisitions and internal changes. The company's stock has experienced a 5.67% increase since December 2022, with a high of 120.57 USD in January 2023 and a forecasted twelve-month high of 181.00 USD.
HONG KONG (AP) — Alibaba plans to spin off some of its sprawling e-commerce and finance empire as independent businesses to make them more flexible and maximize their value, its top executives said Thursday, as the company emerges from regulatory crackdowns that rattled Chinese tech industries.
Alibaba on Tuesday said it plans to split its business into six separate units, in a move that promises to radically reshape the sprawling Chinese e-commerce firm that Jack Ma founded nearly 25 years ago. Each new business unit will be overseen by its own chief executive and board of directors, the company said.
We aspire to be a good company that will last for 102 years. We envision that our customers will meet, work and live at Alibaba. Our vision for fiscal year 2036 is to serve 2 billion global consumers, enable 10 million businesses to be profitable and create 100 million jobs.
If we talk about Alibaba Stock Price Prediction 2040, then according to our analysis, in the year 2040, the average price of Alibaba Stock can be up to $680, and the maximum price can be up to $760.