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Baba Stock jumps 52 % – can AI Bet be an artificial intelligence growth?

Ali Baba Group today

Alibaba Group Hold Limited Stock Logo
139.18 dollars +5.17 (+3.86 %)

As of 02/26/2025 03:59 pm

52 weeks
68.36 dollars

145.30 dollars

Profit
0.70 %

P/E ratio.
20.11

The target price
144.07 dollars

Alibaba Group shares New York: Papa In tears to start 2025, estimated and consumer shares rise by 52 % this year as of February 25. The company’s cloud computing has impressed investors in the latest release of profits on February 20.

The shares increased by 8 % response. A few days later, Alibaba said it was planning to spend more than $ 52 billion on cloud computing and infrastructure for Amnesty International in the next three years.

So, what should we take from these modern developments around Ali Baba? Will it continue its strength and allow the stock to be a long -term winner? I will look forward to answering these questions by diving in the company’s last profits and analyzing its strategic situation.

The impressive Ali Baba profit results are destroyed

in The latest results of Ali BabaIts revenues were mainly in line with what analysts expected. However, Big Beat came on a modified profit for the stock. Its number $ 2.95 exceeded expectations by more than 10 %. The growth in the cloud intelligence sectors of the company and international digital trade was impressive. Previously grown by 13 %, and the latter by 32 %.

Incalously, the growth of cloud intelligence revenue has been accelerating every quarter for some time now. In Q4 2023, this part of the work grew less than 3 %. The CEO (CEO) Edi Wu said that the prosecution products were the key to this. Revenue from these products grew by more than 100 % for the sixth quarter in a row. The Chinese e -commerce sector, known as Taobao and TMALL, has witnessed 5 % sales.

Understand the cloud of Baba and the position of artificial intelligence

The investment plan in Alibaba is of $ 53 billion in the CLOUD and AI infrastructure over three years, equivalent to about $ 18 billion per year. This is much lower than about $ 40 billion than Microsoft Nasdak: msft Looking to invest on only the next two quarters. However, it is still very big when considering that the cloud alibaba works are much smaller.

Alibaba Group shares expectations today

The stock price expectations for 12 months:
144.07 dollars
He buys
Based on 14 analyst classifications
High expectations 190.00 dollars
Average expectations 144.07 dollars
Low expectations $ 100.00

The expected details of the shares of Alibaba Group

The company’s cloud revenues amounted to $ 14 billion last year. Microsoft’s smart cloud revenue is only about $ 26 billion in the last quarter of this amount. However, compared to the volume of cloud computing works, the planned spending of albaba is much greater.

To be clear, Alibaba does not compete directly with companies like Microsoft. He competes with other Chinese companies in cloud computing. However, comparing this planned spending highlights that the race to “Win AI” not only occurs between American companies. Many see the artificial intelligence of an existential national security issue, and China cannot sit silent.

The winners of this country will appear as they do in the United States. As of Q3 2024, Alibaba has held the largest market share of cloud infrastructure Revenue in China by 36 %. This is almost the weakness of the next closest player. Currently, Ali Baba seems to be the pioneering horse and a great conjunction with the old.

Consates related to government and final ideas on Baba

For several years so far, investing in the Chinese stock market was difficult. During the past five years, ISHARES MSCI China ETF Nasdak: mchi A total return of -4 % has provided. In the same period, the S& P 500 index achieved approximately 99 %. Government interference in the economy caused a major turmoil. Many investors avoid the country’s shares completely. However, this also indicates that these shares may have great potential to estimate them.

In my opinion, the Chinese government must launch its own technology companies to compete with the United States in artificial intelligence. there Evidence that tensions Between government officials and technology leaders in the country, they reduce.

Chinese President Xi Jinping recently held a rare meeting with the main Chinese technology leaders, including the founder of Alibaba Jack MA. The meeting was a pro -business, which indicates that the government is heading towards working with technology companies more than against it.

In general, someone will have to help China to advance its cloud and artificial intelligence technology. There is no more prepared person to do this at this stage of Ali Baba. Looking at the trends in Chinese government business and signals, I am optimistic about the shares of Ali Baba. Some of the Wall Street analysts see the near -term gathering away from more than the end. The average endless bullish trend of seven price goals followed by post -Marketbeat 24 % from February 25.

Before you think about the alibaba group, you will want to hear it.

Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has identified the five shares that the top analysts quietly whispered to their customers to buy now before hunting the broader market … The Alibaba group was not in the list.

While the Alibaba group currently has a “purchase” classification among analysts, higher -rated analysts believe that these five stocks buy better.

Show the five stocks here

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