Alibaba Stock Soars 47% in 2025 Amid Positive Analyst Projections

HONG KONG, China — Alibaba Group Holding Ltd. is set to report its earnings soon, and Wall Street is optimistic about the company’s financial outlook. Analysts project that Alibaba will earn $2.06 per share on revenues of $35.35 billion in the first quarter of 2025.

Shares of the Chinese e-commerce giant have surged over 47% year-to-date, driven by strong performance in its artificial intelligence-driven cloud services and growing demand for fast delivery options. Despite this bullish trend, analysts caution that profit margins may come under pressure due to ongoing investments.

Recently, Alibaba has taken strategic steps beyond its core operations. The Hong Kong Stock Exchange has granted initial approval for Alibaba to spin off its Banma subsidiary through an initial public offering (IPO). Following the offering, Alibaba’s ownership stake in Banma will decrease from 44.7% to about 30%. This change aims to allow Banma greater operational independence and provide investors with a clearer view of its business.

About 92% of Wall Street analysts maintain a positive outlook on Alibaba, citing consistent consumer demand. Nevertheless, some analysts have recently lowered their price targets due to concerns regarding narrowing profit margins as the company intensifies its investments.

Mizuho Securities cut its price target from $160 to $149, highlighting rising margin pressures. Analyst Fang noted that competition in China’s local commerce sector, particularly in food delivery and rapid retail, is increasingly affecting profitability. He anticipates that Q1 margins will drop significantly from the previous quarter and warned that margin challenges could persist through 2025 and into 2026 unless regulatory measures are implemented to mitigate price competition.

Despite these concerns, the consensus on TipRanks remains highly favorable, with 12 Buy ratings and one Hold rating for Alibaba’s stock. The average price target of $148.55 implies a potential upside of approximately 20.83% from current levels.