Alibaba Rebounds on AI Growth and China-US Trade Hopes After Soft Q4
Alibaba stock jumped as much as 6% after a disappointing Q4, as investors focused on improving U.S.-China trade relations and Alibaba’s robust cloud/AI growth, including AI-related products with triple-digit growth. Cloud revenue rose 38% YoY to 41.63 billion yuan, external revenue up 40%, and Alibaba reaffirmed a 380 billion yuan AI spend through 2027 with Qwen AI expansion across Taobao and Tmall. Despite near-term profit pressure, the stock benefits from long-term AI growth prospects, and Wall Street remains constructive with a Strong Buy consensus and a target of about $186.32, signaling roughly 30% upside.
