Alibaba's Cloud Business Accelerates Growth Amid E-Commerce Stabilization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy BABA?
Source: NASDAQ.COM
- E-Commerce Stabilization: Alibaba's core e-commerce platforms, Taobao and Tmall, reported a 6% year-over-year growth in Q4 2025, indicating stabilization despite fierce competition, thus remaining the primary revenue source for the company.
- Investment in Quick Commerce: To counter competition, Alibaba has significantly increased spending on quick commerce, user experience, and technology, which, while pressuring earnings, enhances brand recognition and user engagement.
- Rapid Cloud Growth: Alibaba Cloud experienced a 36% year-over-year revenue growth in Q4 2025, driven largely by demand for AI-related services, showcasing the company's strong performance in the cloud computing market.
- AI Driving Future Growth: With AI workloads growing at triple-digit rates for ten consecutive quarters, Alibaba's cloud business is poised for high double-digit growth in 2026, marking a successful strategic transformation for the company.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 123.730
Low
180.00
Averages
203.09
High
230.00
Current: 123.730
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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