Alibaba (NYSE: BABA), one of the key stocks in the portfolio of Michael Burry, famous for his ‘Big Short’ bet against the U.S. housing market, is catching the attention of analysts as the equity continues to record an impressive run in 2025.
On a year-to-date basis, BABA has rallied by 22%, ending the last trading session valued at $103.51. In the past week, the equity has gained almost 7%, with a legendary trader projecting BABA could nearly double in the coming months.
Specifically, Peter Brandt has described Alibaba’s stock movement as one of the most promising setups he has seen in years, projecting that the equity could hit $200, an upside of about 95%, according to his X post on February 9.
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Brandt’s bullish outlook is rooted in the ascending triangle pattern on BABA’s weekly chart. This continuation formation has the stock consolidating below the $117.82 resistance level, which has capped its gains since 2022.
With Alibaba approaching this key resistance, a breakout could trigger a rally to $200.
Besides the bullish outlook, the analyst offered a cautionary note, stating that investors should watch for the upcoming earnings season.
“The chart of $BABA is one of the most promising charts I have seen in a long time. This is a stock I am already invested in. I think $200 is the next stop. Earnings forthcoming though,” Brandt said.
BABA stock fundamentals
Regarding earnings, Alibaba is set to maintain steady growth. Analysts estimate its revenue to reach about $39 billion for the last quarter of 2024, up 7.06% year over year. For the first quarter of 2025, revenue is forecast at $33.4 billion, reflecting a 7.44% increase.
For fiscal 2025, Alibaba’s revenue is projected at $139.9 billion, a 6.15% rise, and is expected to climb to $151.2 billion in 2026, growing 8.06%.
Despite the recent upside momentum, BABA has dropped almost 70% from its all-time high but presents a compelling opportunity for consideration. The company is currently working on a turnaround that will likely give it an edge in the competitive e-commerce space.
For instance, Alibaba’s Tmall and Taobao platforms are emerging as key players in the Chinese e-commerce market, contributing to $60 billion in annual revenue. However, its diverse operations, including Cainiao logistics, cloud computing, and international e-commerce, are driving growth.
The firm’s other fundamentals also stand out: robust consumer spending in China, clear strategic direction after management changes, a healthy balance sheet with minimal debt, and a growing presence in artificial intelligence (AI).
Wall Street take on BABA stock price
For the next 12 months, 12 Wall Street analysts are projecting an upside in BABA stock with a ‘Strong Buy’ rating. According to analysts at TipRanks, the consensus price target sits at $121.33, implying a potential 17.22% growth.
The projections range from a bullish high of $144 to a conservative low of $105, reflecting mixed sentiment on the Chinese e-commerce giant’s prospects.
Among the experts, on January 9, Citi’s Alicia Yap reiterated a ‘Strong Buy’ rating for Alibaba, raising her price target from $133 to $138. Yap cited earlier estimates for the company’s merchandise volume as conservative.
Similarly, Barclays’ Jiong Shao maintained a ‘Strong Buy’ after the firm’s Q2 2025 earnings but lowered his target from $137 to $130, reflecting a 24.27% upside. Despite concerns over margins amid ongoing investments, Shao noted the results aligned with expectations.
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