Alibaba Group (NYSE:BABA) reported second-quarter results on Friday that fell short of Wall Street estimates on both revenue and earnings, but shares surged as strength in artificial intelligence fueled acceleration in its cloud business. Several major banks raised their price targets following the report.
Goldman Sachs increased its price target on Alibaba to $163 from $147 while maintaining a Buy rating. The firm said it expected a steeper September-quarter drag of RMB31 billion from quick commerce operations, compared with RMB20 billion previously, but forecast losses per order would halve by December as the company focused on higher-quality users, subsidy normalization, and delivery efficiency. Goldman projected Alibaba’s food delivery and quick commerce market share would eventually stabilize at 40%.
JPMorgan raised its price target to $170 from $140, keeping an Overweight rating. Analysts said Alibaba’s food delivery and quick commerce operations had reached sufficient scale to drive efficiency, echoing the earlier trajectory of rival Meituan. The bank highlighted management’s RMB1 trillion GMV goal for quick commerce within three years and forecast sustained double-digit revenue growth, supported by high-single-digit CMR gains, 20%+ cloud expansion, and mid-teens growth in international business. JPMorgan added that quick commerce losses could narrow meaningfully by December or at the latest by 2026.
