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Wall Street sets Alibaba stock price for next 12 months

Wall Street sets Alibaba stock price for next 12 months
Elmaz Sabovic

The previous month for Alibaba (NYSE: BABA) stock brought slight gains driven by the news of the purchase of shares of its co-founder, Jack Ma. However, the previous year has brought losses that clawed off almost -30% of its stock value.

In its latest quarterly report, Alibaba Group Holding Ltd. has announced the approval of an additional $25 billion for stock repurchases, seeking to reassure investors worried about the growth trajectory of the Chinese e-commerce giant amidst emerging competitors like PDD Holdings Inc (NASDAQ: PDD).

As of the February 7 closing, BABA stock was trading at $73.64, reflecting a loss of -5.87% since the previous closing. In the past five trading sessions, this stock has gained 0.61%.

BABA 7-day stock price chart. Source: Finbold
BABA 7-day stock price chart. Source: Finbold

BABA is presently trading in the lower segment of its 52-week range, which may raise concerns. This is particularly noteworthy while the S&P 500 Index approaches new highs.

A support area spans from $72.30 to $73.42, established by converging various trend lines and significant moving averages within the daily timeframe. Conversely, a resistance area ranges from $77.51 to $78.52, formed by the intersection of multiple trend lines across various timeframes.

BABA stock technical indicators. Source: ChartMill
BABA stock technical indicators. Source: ChartMill

An aim to revamp core business in the face of competition

In a transition spearheaded by co-founders CEO Eddie Wu and Chairman Joe Tsai, the group revealed its decision to divide its business into six units last March. Wu, who has served as group CEO since September, will oversee the domestic e-commerce arm directly.

Wu said on February 7:

“Our foremost objective is to revitalize the growth of our core businesses, namely e-commerce and cloud computing,” 

Wall Street forecast for BABA stock

Recent troubles and weak performance in the past year haven’t deterred analysts from TipRanks. They awarded this stock with a ‘strong buy’ rating. With a price target set at $114.02, indicating a 54.83% upside from the current level.

Of 21 predictions, 18 advised a ‘buy,’ 3 to ‘hold,’ and none to ‘sell.’

Wall Street analysts’ average price target for BABA. Source: TipRanks
Wall Street analysts’ average price target for BABA. Source: TipRanks

Analysts from TradingView concur with the ‘strong buy’ rating based on 57 valuations. Of these, 41 recommend a ‘strong buy,’ 6 ‘buy,’ 9 ‘hold,’ and only one to ‘sell.’

The price target is $109.45, with a similar upside of 48.63% from the current price.

BABA stock price target from TradingView.
BABA stock price target from TradingView.

Predictions for this stock seem pretty bullish, especially looking at the recent performance, with analysts seeing potential for this stock in the future. Whether they are correct, we will see.

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