Bernstein Calls Alibaba’s (BABA) Valuation “Art More Than Science,” But Maintains $200 Target

Core Viewpoint - Alibaba Group Holding Limited is highlighted as a significant AI stock to monitor, with Bernstein raising its price target from $167 to $200 while maintaining an Outperform rating, driven by positive momentum post-Q1 and confidence in its AI strategy [1] Group 1: Financial Performance and Projections - Bernstein expects Alicloud revenue to continue accelerating, contributing to the overall positive outlook for Alibaba shares [1] - The company's Gross Merchandise Volume (GMV) share in China has stabilized at approximately 15-20%, indicating a solid market position [2] Group 2: Market Dynamics and Competition - The firm expresses concerns about competition in the domestic e-commerce space, suggesting that a stable equilibrium may be difficult to achieve [3] - Despite the current valuation entering a complex territory, Bernstein believes Alibaba shares will remain well-supported in the near term [2]