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Legendary trader sets 100% upside for this Michael Burry stock; Should you buy?
BABABABA(BABA) Finbold·2025-02-09 21:00

Core Viewpoint - Alibaba (NYSE: BABA) is experiencing significant stock performance in 2025, with a year-to-date increase of 22% and a recent valuation of 103.51,attractingattentionfromanalystsandtraders[1][2].StockPerformanceandProjectionsPeterBrandt,anotabletrader,predictsthatAlibabasstockcouldreach103.51, attracting attention from analysts and traders [1][2]. Stock Performance and Projections - Peter Brandt, a notable trader, predicts that Alibaba's stock could reach 200, representing a potential upside of approximately 95%, based on an ascending triangle pattern observed in the stock's weekly chart [2][3]. - The stock is currently consolidating below a resistance level of 117.82,whichhaslimiteditsgainssince2022[2][3].EarningsandRevenueEstimatesAnalystsforecastAlibabasrevenuetobearound117.82, which has limited its gains since 2022 [2][3]. Earnings and Revenue Estimates - Analysts forecast Alibaba's revenue to be around 39 billion for Q4 2024, reflecting a year-over-year growth of 7.06%, and 33.4billionforQ12025,indicatinga7.4433.4 billion for Q1 2025, indicating a 7.44% increase [5][6]. - For fiscal year 2025, revenue is projected at 139.9 billion, a 6.15% rise, and is expected to grow to 151.2billionin2026,withan8.06151.2 billion in 2026, with an 8.06% increase [5]. Market Position and Growth Drivers - Alibaba's Tmall and Taobao platforms are significant contributors to the Chinese e-commerce market, generating 60 billion in annual revenue, while its diverse operations, including logistics and cloud computing, are also driving growth [7][8]. - The company is noted for its robust consumer spending in China, a clear strategic direction post-management changes, a healthy balance sheet with minimal debt, and an increasing focus on artificial intelligence [8]. Analyst Sentiment and Price Targets - A consensus among 12 Wall Street analysts indicates a 'Strong Buy' rating for BABA, with a price target of 121.33,suggestingapotentialgrowthof17.22121.33, suggesting a potential growth of 17.22% over the next 12 months [9][10]. - Projections for BABA's stock price range from a high of 144 to a low of $105, reflecting mixed sentiments regarding the company's future prospects [10][11].