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Several Stocktwits users see more upside for Alibaba, with one predicting a long-term price target of $200 or more. Another said Chinese stocks were now "easier money" amid President Trump's trade war.
U.S.-listed shares of Alibaba Group Holdings Ltd (BABA) rose 4.6% to a more than three-year high of $147.57 on Monday on growing optimism over its artificial intelligence initiatives, boosting interest from retail investors.
BABA’s Hong Kong shares (9988) were up more than 5% in late afternoon trading on Tuesday.
Alibaba is in a leading position in AI, thanks to strategic initiatives by its founder Jack Ma over the last two years, and intends to push harder this year, according to a report in the Financial Times.
CEO Eddie Wu has reportedly instructed staff to adopt AI across functions and told all units that their 2025 performance will be evaluated by how they leverage AI to spur growth, FT reported, quoting people with knowledge of the discussions.
Monday’s gains closely tracked those in rival tech company Baidu Inc (BIDU), which rose 9%, and Chinese Internet stocks more broadly. KraneShares CSI China Internet ETF (KWEB), which tracks the latter, was up 4.11% to an over five-month high.
Shares of Chinese companies were partly supported by a new round of stimulus measures aimed at boosting private spending by Beijing. On Monday, Alibaba also announced new functionality and benefits for the U.S. users of its B2C e-commerce site AliExpress.
Alibaba shares have been on a tear lately, with the stock gaining three quarters in value year to date.
Last month's strong earnings report, the company's rapid development of artificial intelligence, and a perceived revival of the relationship between founder Jack Ma and Chinese President Xi Jinping are boosting confidence in the stock.
On Stocktwits, however, retail sentiment for BABA ended on a 'bearish' note. It has changed little from a month back, although interest has increased significantly.
Retail chatter about the company rose 631% in the last 24 hours and 168% in the past week.
Several Stocktwits users see more upside for Alibaba, with one predicting a long-term price target of $200 or more. Another said Chinese stocks were now "easier money" amid President Trump's trade war.
Over 90% of analysts covering the stock have a ‘buy’ or higher rating on the stock, with an average price target of $161.74, according to Koyfin data.
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