Alibaba stock price prediction 2025: Should you invest?
Are you looking for an Alibaba stock price prediction for 2025?
In this article, we will examine some of the factors that will influence Alibaba’s performance in the coming years, before giving you an idea of where the stock price is likely to be headed.
Firstly, it’s important to point out that as one of the largest e-commerce companies in the world, Alibaba has been a major player in the tech industry since its inception in 1999.
However, in recent years, the company has faced significant challenges, including regulatory pressure from the Chinese government, legal issues and the COVID-19 pandemic.
These challenges have contributed to a steep decline in the Alibaba stock price, leaving investors uncertain about the future of the company.
Nevertheless, when asked to make an Alibaba stock price prediction for 2025, some market analysts are cautiously optimistic.
In this article, we will examine the factors that are likely to impact Alibaba’s stock price in the years ahead and consider the potential for a rebound in the company’s valuation.
Factors behind the Alibaba stock price prediction for 2025
We will analyze the most recent financial results and explore the company’s plans for growth in the coming years, including its focus on cloud computing, logistics, and other emerging technologies.
With so much uncertainty surrounding the tech industry and the global economy, predicting the future of any company’s stock price is challenging.
However, by examining the current trends and looking at the potential for growth and innovation, we can begin to develop a clearer picture of what the future may hold for Alibaba.
Whether you are a current investor in the company or simply interested in the tech industry, this article will provide valuable insights into the Alibaba stock price prediction for 2025 and beyond.
The Alibaba stock price in 2022 and 2023
The recent performance of the Alibaba stock price has been mixed. Between 2021 and 2022, it fell by around 50%, leading may to hope the worst was behind the Chinese internet giant.
Alibaba’s first quarter results for 2022 delivered better-than-expected earnings and an improving outlook, raising the hopes of investors.
While quarterly results releases are backwards-looking, during the Q1 results call Q&A, Alibaba’s chief executive office, Daniel Zhang shared some insight into how the second quarter is shaping up for the company.
“With regards to the recovery that we’re seeing in consumption trends, certainly on our platforms, we saw that following the period of April, May going into June, signs of recovery certainly appeared in particular with the recovery of delivery and logistics capabilities, the normalization of logistics,” said Zhang.
“And certainly, in this year’s 618 shopping festival, we saw very good performance with positive growth achieved for the quarter. And we continue to see this positive trend of recovery continuing through July, and we expect that July will be even better than June.”
Alibaba posted revenue of US$30.7 billion in the April-June quarter of 2022 – which was around the same revenue generated during the same quarter in 2021.
Usually investors demand year-on-year revenue increases in so-called high-growth technology companies, but given the uncertainties surrounding the Chinese economy and the COVID-19 lockdowns in the country, this result was better than expected.
In fact, the average Wall Street analyst’s estimate had Alibaba’s revenue declining by 1.5%. So this result was seen as positive.
Asia Markets analyst, Aditya Raghunath, had noted growth on Alibaba’s cloud business unit would be something to look out for in the Q1 results – and it didn’t disappoint.
Revenue from the Cloud segment for the quarter was US$2.6 billion, up 10% compared to the same quarter in 2021.
“Year-over-year revenue growth of our Cloud segment reflected recovering growth of overall non-Internet industries, driven by financial services, public services, and telecommunication industries,” said the company.
Like Microsoft’s Azure cloud business and the Amazon Cloud, Alibaba’s cloud business is seen as one of the company biggest future growth drivers, as demand for data storage across the world increases.
Electric vehicle manufacturer XPeng Motors was among those to announce it would partner with Alibaba to develop a data center for autonomous driving vehicle model testing.
There was some panic in late 2022, as legendary investor Ray Dalio began dumping Alibaba stock. However, in 2023, the Alibaba stock price started more strongly and was up around 10% in the first six weeks of the year.
Has Alibaba stock bottomed?
In 2022, The company’s NYSE-listed stock currently traded at just below its 2014 listing price and more than 70% lower than the record highs seen in October 2020.
During a brutal period for investors, the company had been hit by a damaging anti-monopoly probe in China, audit battles involving U.S. authorities, delisting concerns, and supply chains issues resulting from COVID-19 lockdowns.
Trying to time the bottom for the Alibaba stock price is near impossible. But for the long term investor willing to navigate further short-term volatility, Alibaba’s stock price appeared to be an attractive entry point and it bounced back in early 2023.
Alibaba stock price prediction 2025
As mentioned above, there are many challenges facing the Alibaba stock price. Not only is there competition from companies like Amazon and JD.com, but short-video tech platforms like TikTok are also threatening to steal market share.
Early in 2023, there was a strong stock price rally, but as Bloomberg reported, it did start to run out of steam as investors again started to turn against Chinese tech shares.
However, when sentiment is low, it is often a good opportunity for long-term investors and the Alibaba stock price is still a long way from all-time highs. One analyst describes it as an “excellent growth play”.
Analysts who provide data to CNN think the Alibaba stock price has a lot of potential upside in the next 12 months, setting a media target of HK$143.06.
The Motley Fool says if Alibaba meets analysts’ expectations and continues to grow its revenue and earnings per share at 20% for another two years, it could increase in price by 400% from current valuations.
That is essentially a Alibaba stock price prediction of HK$400 in 2025.