China's 'gradual bull market' gains traction with Goldman Sachs getting involved
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Should l Buy BABA?
Source: MarketWatch
Market Trend: China's equity market is experiencing a gradual increase, leading to discussions about a potential "slow bull market."
Government Preference: The Chinese government aims for a steady rise in the market, favoring an orderly ascent over the volatile fluctuations that have historically characterized it.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BABA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 135.590
Low
180.00
Averages
203.09
High
230.00
Current: 135.590
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 nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo 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.
- Leadership Change: Following the resignation of Lin Junyang, head of Alibaba's Qwen AI unit, CEO Eddie Wu announced the formation of a task force comprising himself, CTO Wu Zeming, and Cloud CTO Zhou Jingren to consolidate resources and accelerate foundation model development.
- Strategic Priority: In an internal memo, Wu emphasized that advancing foundation models is a core strategic priority for the company, stating that they will continue to uphold their open-source model strategy while increasing investment in AI research and development to attract top talent.
- Ongoing Leadership: Zhou Jingren will continue to lead the Tongyi Laboratory, which focuses on developing Qwen AI models, ensuring the company's sustained innovation and technological advancement in the AI sector.
- Industry Reaction: Lin's resignation has garnered significant attention within the industry, with many, including Chinese AI startup MiniMax, expressing gratitude for his contributions to the open-source community, highlighting his influence in the field.
See More
- Market Sentiment Shift: Despite Alibaba's stock declining over 13% in the past six trading sessions, retail trader sentiment has shifted to ‘extremely bullish’ at 88/100 according to Stocktwits, indicating expectations for a rebound in the near future.
- Analyst Rating Upgrade: Goldman Sachs upgraded Alibaba's rating from ‘Buy’ to ‘Conviction Buy’ with a price target of $186, suggesting a potential upside of about 40%, reflecting the company's strong positioning in AI and cloud services.
- Surge in Trading Volume: During Wednesday's selloff, Alibaba's average trading volume nearly doubled to 14.3 million shares, indicating a significant increase in market interest, despite geopolitical pressures and the uncertainty surrounding its earnings date.
- Optimistic Long-Term Outlook: While some investors express frustration over the stock's decline, 37 out of 42 analysts maintain a ‘Buy’ or higher rating on Alibaba, with an average price target of $198.95, implying nearly 50% upside, suggesting a generally optimistic view on its long-term performance.
See More
- Amazon Share Trade: Amazon traded 66,934 shares valued at approximately $14.5 million, reflecting a cautious investor sentiment amid strategic adjustments in the e-commerce sector.
- Earnings Beat: Amazon reported fourth-quarter revenue of $213.39 billion, exceeding estimates, while planning to increase capital expenditures to $200 billion, indicating strong confidence in future growth.
- Joby Aviation Investment: Ark Invest acquired 200,856 shares of Joby Aviation valued at around $2 million, with Joby's fourth-quarter earnings showing an EPS of -$0.14, beating estimates by 30%, highlighting improved financial health.
- Nextdoor Holdings Divestment: Ark Invest sold 1,405,207 shares of Nextdoor Holdings for about $2.3 million, following the company's earnings report that showed a 7% year-over-year revenue increase and a narrowed net loss of $4 million.
See More
- Portfolio Adjustment: Billionaire hedge fund manager Daniel Loeb reshuffled his investments in the broadline retail sector during Q4 FY25, increasing his stake in Alibaba (BABA) while trimming his position in Amazon (AMZN), indicating a reassessment of the e-commerce landscape.
- New Position in Alibaba: Loeb opened a new position with 825,000 shares in Alibaba, reflecting optimism about the company's growth potential despite its current stock trading below both the 20-day and 100-day simple moving averages.
- Amazon Stake Reduction: Concurrently, Loeb reduced his Amazon holdings from approximately 2.81 million shares to 2.165 million shares, suggesting a cautious outlook on Amazon's future performance, possibly due to concerns over its competitive position.
- Market Outlook Analysis: Alibaba is set to report earnings on March 17, 2026, with analysts estimating EPS to drop to $1.73 while revenue expectations rise to $41.26 billion, indicating confidence in its long-term growth despite short-term challenges.
See More
- Oversold Stock List: A search using the Benzinga Pro Scanner identified stocks with market caps over $2 billion and RSI below 30, with KraneShares CSI China Internet ETF (KWEB) showing an RSI of 18.32, indicating extreme oversold conditions that may lead to a rebound if risk appetite improves.
- JD.com Performance: JD.com has an RSI of 24.42, with shares around $25.21, down 1.68% on the day, reflecting the overall pressure on Chinese consumer and internet stocks, potentially providing short-term trading opportunities for investors.
- Broad Market Overselling: iShares China Large-Cap ETF (FXI) posts an RSI of 24.99, trading near $35.89, indicating that selling pressure has broadened from individual stocks to major Chinese benchmarks, which may influence investors' regional allocation decisions.
- Emerging Market Signals: iShares MSCI India ETF (INDA) shows an RSI of 29.75, trading around $50.03, indicating oversold conditions and suggesting that selling pressure has spread to broader Asian and emerging markets, potentially prompting long-term investors to reassess their risk tolerance.
See More
- Executive Departure: Lin Junyang, head of Alibaba's Qwen AI model division, has stepped down, with the reasons for his exit remaining unclear; this change could impact the company's strategic direction and execution in the AI sector.
- Team Turmoil: Lin's resignation follows the departure of Yu Bowen, who led post-training for Qwen, suggesting a potential decline in team morale and continuity of ongoing projects due to this series of executive changes.
- Product Launch: Just two days before Lin's resignation, Qwen introduced the updated Qwen 3.5 Small Model Series, indicating the company's ongoing innovation in AI technology, although leadership changes may affect the product's market performance.
- Industry Reaction: Lin bid farewell to Qwen on social media, with companies like MiniMax expressing gratitude for his contributions to the open-source community, yet this also raises concerns about Alibaba's future AI strategy amidst these leadership shifts.
See More











