Morgan Stanley predicts “potential Beat” while Alibaba (Baba)

Yu described Alibaba as a “big Ai-Enabler”, which is well positioned to ride the wave of the growing demand for AI inference, especially according to the sums created by Deepseek at the beginning of this year. While Tech giants such as Tencent (TCY) and bytedance are geared to meet their own internal AI requirements, Yu, Alicloud, Alibabas Cloud Computing ARM falls as an important provider with enough GPU capacity to serve external customers.

The analyst assumes that Alibabas Cloud turnover accelerates, which increases in the third quarter from 25 to 18% in the fourth quarter of 13% and possibly reached 25% in the GJ26. A stronger than expected cloud performance could also act as a short-term catalyst for the stock.

Beyond the cloud, Yu Alibaba sees in e-commerce as a “early AI adopter” in e-commerce in front of his colleagues. The company takes the best of its proprietary data and its large customer base to improve the services and possibly regain the market share. It also sees space for Alibaba to increase its income interest rate, or the percentage that it deserves from every transaction.

Yu adds that Alibaba’s core trading strength of Alibaba could underestimate. While his base case projects annual growth of e-commerce sales of 5% between 25 and 28 in the GJ 28, he realizes that the latest dynamics could lead to an even greater performance.

Is Baba Stock currently a good purchase?

The analysts are still optimistic about the Alibaba stock railway. With 16 unanimous purchase ratings, Baba Stock has a strong purchase consensus rating for Tipranks. In addition, the average alibaba course goal of $ 167.13 $ 26.95% implies the upward potential from the current level.

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