- Charlie Munger's investment in Alibaba initially seemed like a misstep; however, posthumous gains have transformed its outlook.
- Analysts project a 36.69% upside potential for Alibaba's stock over the next year.
- GuruFocus estimates suggest a slight downside from current trading prices, highlighting discrepancies in valuation perspectives.
Charlie Munger, the renowned investor, took a notable position in Alibaba (BABA, Financial) through the Daily Journal Corp (Trades, Portfolio)oration. Initially, this move was criticized as a potential error due to the company's regulatory hurdles and declining stock value. However, since Munger's passing in November 2023, the narrative around Alibaba has shifted dramatically. In response to impressive earnings and advancements in artificial intelligence, Alibaba's stock has soared by 74%, altering its investment landscape.
Wall Street Analysts Forecast
According to the insights from 38 Wall Street analysts, Alibaba Group Holding Ltd (BABA, Financial) is poised for an average target price of $159.29 over the next year. This projection includes a high estimate of $190.03 and a low of $93.82, indicating a strong potential upside of 36.69% from its current trading price of $116.54. For a more comprehensive analysis, visit the Alibaba Group Holding Ltd (BABA) Forecast page.
Reflecting on the consensus from 43 brokerage firms, Alibaba has earned an average brokerage recommendation of 1.7, denoting an "Outperform" status. This recommendation scale spans from 1 (Strong Buy) to 5 (Sell), positioning Alibaba favorably among investors.
Through GuruFocus's lens, the projected GF Value for Alibaba Group Holding Ltd (BABA, Financial) in the upcoming year stands at $108.68. This evaluation suggests a possible downside of 6.74% from its current price of $116.54. The GF Value represents GuruFocus's fair value estimate, based on historical trading multiples, past growth, and future performance projections. For more granular details, explore the Alibaba Group Holding Ltd (BABA) Summary page.
