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.
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