The Chinese tech giant has seen its stock climb roughly 6% over the past five trading days. This upward trend reflects growing investor confidence in the company’s strategic direction.

One key driver behind Alibaba’s recent success is its increasing popularity among American consumers. The company’s international shopping platform, Alibaba.com, has climbed to the top position in the iOS App Store’s shopping category. This achievement highlights the company’s expanding footprint in the US market.

Alibaba is also making bold moves in technology. The company has announced plans to invest $53 billion in AI and cloud technology over the next three years. This massive investment is already showing results, with the cloud division reporting strong revenue growth.

According to a Barclays analyst who maintains an “Overweight” rating on BABA with a $180 price target, Alibaba’s cloud business is expected to continue its rapid expansion throughout the year.

The analyst noted that Alibaba’s cloud business generates approximately $20 billion in revenue and $2 billion in EBITA annually. Growth rates in this segment are accelerating.

Alibaba has been actively buying back its own shares. The company recently filed Next Day Disclosure Returns with the Hong Kong Stock Exchange, detailing its share repurchase activity from April 28 to May 2, 2025.

For the fiscal year ending March 31, 2025, Alibaba repurchased 1,197 million ordinary shares. This is equivalent to 150 million American Depositary Shares (ADSs) and represents an investment of $11.9 billion.

These buybacks resulted in a 5.1% net reduction in outstanding shares, even after accounting for stock issued through employee programs. The repurchase program signals management’s confidence in the company’s future prospects.

Analysts view these buybacks as more than just financial engineering. They represent a strategic move to boost earnings per share, strengthen market positioning, and potentially support the stock price heading into the earnings report.

The reduced share count could translate into stronger-than-expected earnings per share when Alibaba reports on May 15.

Alibaba’s valuation remains attractive with a forward price-to-earnings ratio of 11.99. This makes it one of the more affordably priced stocks in the tech sector, especially considering its profitability. The company reported a trailing twelve-month net income of $16.77 billion.

Wall Street analysts maintain a “Strong Buy” consensus rating on BABA stock. The average price target stands at $167.13, suggesting a potential upside of 32.90% from current levels.

TipRanks’ AI analyst, Spark, also rates Alibaba as “Outperform,” citing the company’s strong financial performance, reasonable valuation, and strategic investments in AI and cloud technology.

The upcoming earnings report on May 15 will be closely watched by investors. Key areas of focus will include the impact of the reduced share count on earnings per share, revenue growth from cloud and AI investments, and performance in international e-commerce.

Despite persistent US-China trade tensions, Alibaba has shown resilience. Recent positive signals in trade relations may benefit the company, as China has indicated a willingness to engage in trade talks with the US.

Institutional investors also show strong interest in Alibaba, with 107 hedge funds holding positions in the stock as of Q4 2024. This level of institutional backing reflects confidence in the company’s fundamentals and growth strategy.

The May 15 earnings report could mark a turning point, not just for Alibaba’s stock but for how investors view Chinese tech companies on the global stage.