Freedom Capital Downgrades Alibaba (BABA) Despite Raising Price Target to $180

Core Viewpoint - Alibaba Group Holding Limited (NYSE:BABA) is experiencing increased scrutiny on Wall Street, with a recent downgrade from Freedom Capital to "Hold" from "Buy," while raising the price target from $140 to $180, following quarterly results that revealed rising capital expenditures and cost pressures offsetting cloud growth [1][3]. Financial Performance - Alibaba reported quarterly results that exceeded expectations, with significant growth in its cloud segment, which remains a key driver for the stock despite the associated rise in capital expenditures [2][3]. - The company's retail business exhibited moderate growth compared to its e-commerce peers, indicating a need for improved performance in this area [3]. Future Outlook - Analysts emphasize that Alibaba's ability to expand both its retail and cloud operations without a steep increase in related costs will be crucial for its performance in the upcoming quarters [3]. - There is a recognition of Alibaba's potential as an investment, but some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [4].