Alibaba (BABA) Stock Forecast 2023

Alibaba (BABA) Stock Forecast 2023: This article discusses the future Alibaba Stock Prediction for both short-term and long term.

The average 12-month Baba Stock Prediction is $152.

Latest BABA Stock Price

Baba Stock Forecast: News and Developments

  • Alibaba’s cloud unit has become the first Chinese enterprise to support Meta’s open-source AI model Llama, allowing its Chinese business users to develop programs off the model. The move could provide sticky customers for Alibaba’s cloud business and allow it to further its own AI ambitions.

BABA Stock Forecast: Analyst Target

 Overall Average$152
Morgan Stanley$150
Truist Securities$130

Baba Stock Price Prediction for the next 5 years

  • Alibaba Baba Stock Price Prediction 2023 is $73.1
  • Alibaba Baba Stock Price Prediction 2024 is $96.9
  • Alibaba Baba Stock Price Prediction 2025 is $112
  • Alibaba Baba Stock Price Prediction 2026 is $156
  • Alibaba Baba Stock Price Prediction 2027 is $183

Alibaba (BABA) Stock Forecast 2023: Q1 Result

Alibaba recorded 10% revenue growth in the 3rd quarter. It is the slowest quarterly year-on-year growth rate for the company since its 2014 U.S. listing.

  • Revenue: Alibaba’s revenue for the first quarter of 2023 was 187.2 billion yuan ($28.1 billion), up 9.7% year-over-year.
  • Net income: Alibaba’s net income for the first quarter of 2023 was 44.1 billion yuan ($6.7 billion), down 20.4% year-over-year.
  • Earnings per share: Alibaba’s earnings per share for the first quarter of 2023 were 7.94 yuan ($1.15), down 24.4% year-over-year.
  • Guidance: Alibaba’s guidance for the second quarter of 2023 is for revenue of 204-210 billion yuan ($30.8-31.6 billion) and net income of 40-43 billion yuan ($6.3-6.6 billion).

The results were mixed, with revenue growth slowing but net income falling more sharply. The slowdown in revenue growth was largely due to the regulatory crackdown in China, which has weighed on Alibaba’s e-commerce business. The decline in net income was due to a number of factors, including higher costs and lower profits from Alibaba’s cloud computing business. The revenue growth slowdown was a concern, but the company’s management remains confident in its long-term growth prospects. Investors will need to watch closely how Alibaba’s business is affected by the regulatory environment in China in the coming quarters.

Alibaba Group Challenges in Near Term

  • Alibaba is facing increased regulatory scrutiny from the Chinese government. The government has cracked down on a number of Alibaba’s businesses, including its online payments platform Alipay. This regulatory scrutiny could have a negative impact on Alibaba’s business in the near term.
  • Alibaba is facing increasing competition from other Chinese tech giants, such as Tencent and ByteDance. These companies are investing heavily in new businesses, such as e-commerce and online payments. This competition could make it difficult for Alibaba to maintain its market share in the near term.
  • The Chinese economy is slowing down, which could have a negative impact on Alibaba’s business. A slowdown in the Chinese economy could lead to lower consumer spending, which would hurt Alibaba’s e-commerce business.
  •  The trade tensions between the United States and China could also have a negative impact on Alibaba’s business. If the trade tensions escalate, it could lead to a slowdown in Chinese exports, which would hurt Alibaba’s logistics business.

Alibaba (BABA) Stock Forecast 2023: A Future Outlook

  • Firstly, it is to be kept in mind that Alibaba is an established giant and is not supposed to show an exponential growth trajectory much like what is expected from newbies like Douyin. Also, it is well understood that the market will be shared among all the incomers and Alibaba is no exception to that.
  • Didi Global Inc’s’s decision to pull out from New York Stock Exchange has been adding pressure on US-listed Chinese firms and Alibaba investors have started swapping US-listed shares for Hong Kong stock to contain risk amid increasing Sino-US tensions. 
  • There has been an abundance of negative news, but Alibaba is holding the rope to battle it out and rise in difficult times by taking measures like appointing a new CFO and changing business modalities.
  • Finally, owning a giant at multiyear low valuations is not a bad idea, as Sun is expected to shine again on Alibaba by Government support as seen by China’s central bank measures.

Is Alibaba a good investment?

Alibaba is a large Chinese e-commerce company with a strong track record of growth. However, the company is facing some challenges, such as increased regulatory scrutiny from the Chinese government. Whether or not Alibaba is a good investment depends on your individual investment goals and risk tolerance. If you are looking for a growth investment, Alibaba could be a good option. However, if you are looking for a more conservative investment, Alibaba may not be the best option.

Ultimately, the decision of whether or not to invest in Alibaba is a personal one. You should carefully consider your investment goals and risk tolerance before making a decision.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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