Alibaba (BABA, Financials) is among Benchmark's Best Ideas list for 2025, with analysts citing improving fundamentals and renewed growth potential.
Supported by an increase in e-commerce growth and improvements in the take rate, Benchmark forecasts a structural rerating of Alibaba shares next year. Reiterating Alibaba International Digital Commerce's positive forecast, analysts also highlighted a profitability path for the company by fiscal 2026.
Benefiting from the increase of artificial intelligence adoption and the breakthrough of DeepSeek, a major event in the AI ecosystem of China, the company underlined Alibaba's position as a leading artificial intelligence player in the nation. Using its processing capability, technological cooperation, and enormous consumer behavior dataincluding transaction and payment insights Alibaba's cloud company continues to be a significant driver. Benchmark said AliCloud's appeal to edge device original equipment makers enhances its AI ecosystem even more.
Benchmark suggests that a possible cooperation with Apple (AAPL, Financials) would provide Alibaba a competitive edge in artificial intelligence cloud services.
Benchmark maintained its "buy" recommendation on Alibaba, aiming for $160, a 15% increase from the most recent closing price of $139.08. Before ending 3.8% higher at $139.08, Alibaba's shares increased up to 6% intraday.
This article first appeared on GuruFocus.免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。