Strong Analyst Confidence in Alibaba Group Holding (BABA) Amid AI and Cloud Momentum

Core Insights - Alibaba Group Holding Limited (NYSE:BABA) is currently viewed positively by investors, with 85% of Wall Street analysts expressing bullish sentiments and a consensus price target of $196.99, indicating a potential upside of 31.50% [2] Group 1: Company Developments - On January 5, 2026, Alibaba announced plans to introduce AI-powered services for restaurants through its Amap app, allowing businesses to create 3D interior renderings at no cost for a limited time, aiming to enhance competition with Meituan in China's food and dining sector [3] - The company is focusing on expanding its ecosystem beyond traditional e-commerce by leveraging ongoing advancements in AI and cloud technology [3][5] Group 2: Analyst Ratings and Market Outlook - Morgan Stanley maintained an 'Overweight' rating but reduced its price target from $200 to $180, citing a weaker outlook for core e-commerce due to high consumption levels expected in the first half of 2027, despite strong cloud growth [4] - Jefferies reiterated its 'Buy' rating while lowering its price target from $231 to $225, highlighting robust performance in Quick Commerce and accelerating cloud revenue driven by AI demand [4]