Alibaba Group Holding Limited (NYSE:BABA) is one of billionaire David Tepper’s top stock picks heading into 2026. On December 2, analysts at Susquehanna reiterated a Positive rating and a $190 price target on the stock. The bullish stance comes on the company announcing better-than-expected performance in its core China e-commerce business. Susquehanna Touts Alibaba Group Holding Limited (BABA) Prospects on e-Commerce and Cloud Business Growth Gil C / Shutterstock.com While revenue exceeded expectations ...

Core Viewpoint - Alibaba Group Holding is positioned as a strong investment opportunity in the AI cloud sector, potentially outperforming major competitors like Amazon, Microsoft, and Alphabet by 2026 [2][15]. Company Overview - Alibaba has a market capitalization of $375 billion, significantly smaller than the $2.5 trillion market caps of Amazon, Microsoft, and Alphabet [3]. - The company operates a global wholesale B2B marketplace, Alibaba.com, featuring over 5,900 product categories and more than 200 million products available for trade in over 200 countries [4]. E-commerce Performance - Alibaba's e-commerce revenue for the quarter ending September was $14.46 billion, reflecting a 9% year-over-year increase [5]. - Including "quick commerce" sales, Alibaba's total e-commerce revenue reached $18.62 billion, a 16% increase from the previous year, with international digital commerce revenue at $4.88 billion, up 10% [6]. - In comparison, Amazon's e-commerce revenue for the same quarter was $147.16 billion, with a 12% year-over-year growth [6]. AI Cloud Growth - Alibaba's Cloud Intelligence Group generated $5.59 billion in revenue for the September quarter, marking a 34% increase from the same period last year, driven by public cloud revenue growth and AI product adoption [10]. - The company holds a 35.8% market share in China's cloud computing market, the largest in the region [11]. Valuation and Future Outlook - Alibaba is noted for having the most attractive forward price-to-earnings and price-to-sales ratios among cloud computing stocks [12]. - Revenue growth for Alibaba is projected at 9% for the next fiscal year, surpassing expected growth rates for Amazon (1.45%) and Alphabet (4.7%), while Microsoft is expected to grow by 17.8% [14].

Group 1 - Alibaba Group Holding Limited (NYSE:BABA) is highlighted as a must-buy US stock, with a focus on its partnership with Arteris Inc. to enhance RISC-V system-on-chip designs for various applications including edge AI and automotive technology [1] - Mizuho analysts have raised Alibaba's price target to $195, citing strong growth in summer-quarter deliveries and increased demand in e-commerce, driven by incentives [2] - Alibaba's Quark unit has launched "Plan C," a new conversational AI initiative aimed at competing with ByteDance's Doubao chatbot, which has 157 million active users, indicating Alibaba's commitment to the AI sector [3] Group 2 - Alibaba operates in multiple segments including e-commerce through platforms like Taobao and Tmall, B2B wholesale marketplaces, cloud computing, digital media, and logistics services via Cainiao [4]

Group 1 - Alibaba International's AI search tool Accio has surpassed 1 million users within six months of launch, reflecting the company's shift towards AI in the B2B sector [1] - Accio has led to a tenfold increase in inquiry volume month-over-month as of April [1] - Alibaba International's overall foreign trade orders grew by 42% year-on-year during the recent 618 shopping festival, with GMV increasing by 30% [1][8] Group 2 - The AI competition in the cross-border e-commerce sector is intensifying, with major players like Amazon and Shopee launching their own AI tools [3] - Despite trade tensions, there remains a strong dependency on Chinese supply chains among small and medium-sized enterprises (SMEs) in the U.S. and Latin America [7] - The growth in orders is attributed to improvements in the platform's trading environment, including logistics, payment capabilities, and the integration of AI in search functions [8] Group 3 - The company aims to enhance seller productivity through AI, addressing inefficiencies in operations that traditionally relied on human labor [10][11] - Accio is envisioned as a "B2B trade version of Google," designed to facilitate global product searches and supplier connections [12][13] - The decision to develop an independent AI search product was influenced by the need for faster search results and a deeper understanding of cross-border e-commerce data [14][15] Group 4 - The company emphasizes the importance of defining clear AI goals and understanding the technology's limitations to ensure effective implementation [22][23] - A culture of "full participation in AI" is encouraged, where every employee recognizes how AI tools can enhance their work efficiency [27][28] - The organization is adapting its structure to ensure that those with the best understanding of AI technology lead product development [26]