- Alibaba Group Holding Ltd (BABA, Financial) achieved impressive growth in Q4 2024, with significant increases in both revenue and net income.
- Analysts foresee a potential 36.69% upside in Alibaba's stock price with continuing investments in AI and cloud computing.
- Despite positive performance, GuruFocus suggests the stock could be overvalued by 6.74% based on their GF Value estimate.
Alibaba Group Holding Limited (BABA) showcased robust financial performance in the fourth quarter of 2024. The company's revenue climbed 8%, reaching $38.38 billion. Meanwhile, net income saw a remarkable surge of 333%, amounting to $6.71 billion. These results highlight Alibaba's aggressive investment in artificial intelligence and cloud computing, positioning the company for long-term growth even amid some apprehension about potential AI investment bubbles.
Wall Street Analysts Forecast
According to forecasts from 38 analysts, Alibaba Group Holding Ltd (BABA, Financial) has an average one-year price target of $159.29, with the highest estimate at $190.03 and the lowest at $93.82. This average price target suggests a potential upside of 36.69% from the current stock price of $116.54. For more comprehensive estimate data, visit the Alibaba Group Holding Ltd (BABA) Forecast page.
Analysts' Recommendations
The consensus recommendation from 43 brokerage firms assigns Alibaba Group Holding Ltd (BABA, Financial) an average rating of 1.7, translating to an "Outperform" status. This rating is part of a scale where 1 indicates a Strong Buy and 5 denotes a Sell. Such a rating underscores the positive sentiment surrounding Alibaba’s stock amidst its strategic growth initiatives.
GuruFocus GF Value Assessment
Despite bullish analyst forecasts, GuruFocus' own assessment indicates a more conservative view. The estimated GF Value for Alibaba Group Holding Ltd (BABA, Financial) over the next year is $108.68. This estimation implies a potential downside of 6.74% from the current stock price of $116.54. The GF Value reflects GuruFocus' valuation model, considering historical trading multiples, past business growth, and future performance projections. Discover more detailed insights on the Alibaba Group Holding Ltd (BABA) Summary page.
