Could Alibaba Stock Be on the Rise? Here's What Experts Say
Alibaba Group (BABA) is the owner of the largest e-commerce and cloud computing company (Alien) in China and offers various cloud-based products and services, including networking, security, storage and artificial intelligence (AI) solutions.
However, U.S. investors are wondering if the stock is on the rise or headed for another downfall. GoBankingRates tapped the expertise of stock market and finance experts to provide insight — below is what they said.
To understand Alibaba’s stock movement, you need to evaluate its diverse products and how global trade influences them, said Adam Garcia, founder and CEO of TheStockDork.com, an investing website that empowers investors about stock trading, particularly in volatile markets.
“While e-commerce growth is steady, cloud computing is expanding quickly, impacting their overall stock value; tariffs can constrain Alibaba’s international trade but may encourage a stronger domestic focus and innovative strategies to boost their global positioning,” he added.
With an expansive e-commerce platform and growing cloud computing services that show potential, these sectors contribute positively to its stock potential, however, tariffs create hurdles that can restrict importing capabilities and impact the company’s trading value, said Edward Piazza, president of Titan Funding.
“The interplay of Alibaba’s innovative product offerings and the international tariff environment is critical,” Piazza added. It might propel growth since e-commerce attracts customers globally, but tariffs on imports could stunt some sales.”
As artificial intelligence shapes global investing, geopolitical tensions can cool investor sentiment.
“Alibaba’s share price has swung sharply this year and a wave of optimism around artificial intelligence agreements carried it higher, but tariff headlines sent a chill through the market and pulled the price back,” said Kevin Marshall, certified public accountant (CPA).
“Even after that setback, the stock still sits well above the lows of last year, which tells me that many investors trust the underlying business more than the latest political headline.
Domestic e-commerce remains the anchor, Marshall said. “Sales growth looks modest on paper but matters because the base is already massive,” he said. “Small gains here translate into a steady stream of cash that funds faster deliveries, better search tools and deeper discounts for loyal shoppers.”
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