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Stocks•20 June 2026•

1 min read

Alibaba Cloud Growth Accelerates to 38% Despite Analyst Price Target Cut

Key Facts

1Alibaba's cloud segment growth accelerated to 38% YoY, with management targeting 40%+ growth in the intermediate term.

2The intrinsic value target for BABA was revised to $144 per share, reflecting lower EPS estimates and a reduced P/E multiple.

Amid a shifting landscape for Chinese big tech, analyst reports highlight a significant acceleration in Alibaba's cloud computing segment, which grew 38% year-over-year. Management is reportedly targeting growth exceeding 40% in the intermediate term as AI integration becomes a core driver. However, the intrinsic value target for BABA has been revised downward to $144 per share, reflecting lower earnings-per-share estimates and a reduced valuation multiple.

This cloud performance comes as Chinese tech peers show varied results; for context, Tencent recently reported an 8% revenue increase per its latest earnings release, while Alibaba remains focused on aggressive AI infrastructure investment. Analysts maintain a 'buy' rating despite a 40% drawdown, noting that while high capital expenditure and negative free cash flow weigh on short-term sentiment, the cloud and AI trajectory remains a critical long-term catalyst.

Monitoring current levels, BABA closed at $107.06 and its Hong Kong listing 9988.HK at 104.9 HKD (close June 18, 2026). Investors should watch for further Chinese macro data to gauge consumer recovery, especially after retail sales in China contracted by 0.6% on June 16, 2026, according to market data, which may impact the company's core e-commerce operations.