Shares of Alibaba (BABA) are currently performing a dramatic act worthy of a Broadway musical-up 5.5% at one point, then settling into a 4.4% gain by 12:34 p.m. ET. Who needs Shakespeare when you’ve got cloud computing? 🌫️
Last week, Alibaba hosted a cloud event so bullish, it made a medieval knight’s tournament look like a tea party. They raised their cloud spending forecast from $53 billion over three years to something even more ambitious. Wall Street analysts, apparently inspired by the spectacle, decided to raise their price targets like they were bidding at an auction for rare manuscripts.
Morgan Stanley and Jefferies: Knights of the Cloud
On Monday, Morgan Stanley and Jefferies-two investment banks with more letters than the alphabet-upped their price targets for Alibaba. Morgan Stanley, once optimistic about $165, now imagines $200 is the new $165. Their reasoning? Cloud growth accelerating 32% in 2026 and 40% in 2027. Last quarter’s 26% growth? Just a warm-up act.
Generative AI, that modern-day sorcerer’s apprentice, is gobbling up Alibaba’s cloud services like a dragon hoarding gold. Morgan Stanley predicts tokens (those tiny AI “units” we all love to hate) will double every two to three months. If this were a tavern, someone would’ve spilled ale on the ledger by now.
Jefferies, meanwhile, raised its target from $178 to $230, citing “remarkable progress” in AI infrastructure. They also praised Alibaba’s Qwen models and software agents. One imagines a court jester writing this report while juggling pineapples.
A Bargain in a World of Feasts
Alibaba’s stock has surged 113% this year, a comeback so bold it’d make a phoenix blush. Yet at 20.7 times earnings, it still trades like a peasant’s soup compared to the Magnificent Seven’s banquet. China’s government, now a fan of tech (unlike 2021’s “burn the village” era), is clearly enjoying the show.
Risks? Of course. But in investing, as in life, sometimes the best time to enter is when the crowd’s still arguing about the plot. After all, who doesn’t want a front-row seat to the next big cloud party? 🎩
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2025-09-29 22:24