Price Prediction for BABA Stock in 2025
Based on current trends and analysis, Alibaba's stock is expected to reach $160 by the end of 2025, driven by its strong AI initiatives, cloud growth, and e-commerce recovery. The stock is currently trading at $135.14, with a forward P/E of 16, suggesting room for further upside.
Reasons for the Prediction:
- AI and Cloud Growth: Alibaba's Qwen 2.5 AI model is outperforming competitors, and its cloud revenue grew 13% last quarter, driven by AI demand.
- E-commerce Recovery: The company's Tmall and Taobao platforms are showing signs of recovery, with third-party revenue up 9%.
- International Expansion: Its international commerce segment is growing rapidly, with revenue up 32%, and partnerships like Apple's AI integration in China are boosting confidence.