Sanmit Amin
2 min read
In This Article:
Alibaba Group Holdings Limited (NYSE:BABA) is one of 10 AI stocks that will skyrocket.
Alibaba Group Holdings Limited (NYSE:BABA) reported its strongest gross merchandise value (GMV) growth in three years during its annual 6.18 shopping festival, held from late May through mid-June. The performance has lifted market expectations for a rebound in the company’s core marketing revenue (CMR) for the June quarter, the first quarter of its fiscal 2026.
An e-commerce platform displaying a wide range of products to customers online.
The 6.18 festival, one of China’s largest mid-year shopping events, serves as a key indicator of consumer sentiment and platform activity. According to Citigroup analyst Alicia Yap, the results were “encouraging” and suggest Alibaba’s e-commerce operations may be regaining momentum following several quarters of muted growth. Yap reaffirmed her Buy rating on Alibaba Group Holdings Limited (NYSE:BABA) and maintained a $169 price target, which implies nearly 50% upside from current trading levels. She noted that the strong GMV results could support a positive surprise in CMR performance, which remains a critical driver of Alibaba’s profitability.
While macroeconomic uncertainties and regulatory overhangs have weighed on Chinese tech stocks, the 6.18 results offer a potential turning point for investor sentiment. Analysts will be closely watching Alibaba’s earnings for further signs of a sustained recovery in its core commerce segment.
While we acknowledge the potential of BABA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
