Why Jefferies Still Sees Alibaba Group Holding Limited (BABA) as a Compelling Buy for 2026

Core View - Jefferies analyst Thomas Chong has lowered the price target for Alibaba Group Holding Limited (NYSE:BABA) to $225 from $231 while maintaining a Buy rating, emphasizing the company's growth potential in artificial intelligence and cloud computing [1][3] Financial Performance - For the second quarter of fiscal 2026, Alibaba reported a 15% year-over-year increase in total revenue, driven by a 10% increase in China e-commerce Customer Management Revenue and a 34% rise in Cloud Intelligence revenue [3] - AI-related product revenues have grown at a triple-digit pace for the ninth consecutive quarter, with external customer revenue accelerating by 29%, indicating strong monetization of Alibaba's AI and cloud capabilities [3] Company Overview - Founded in 1999 and headquartered in Hangzhou, China, Alibaba operates one of the world's largest digital commerce and cloud ecosystems, connecting U.S. businesses with over 40 million global B2B buyers through Alibaba.com [4]