May 5 - Alibaba (BABA, Financial) shares advanced about 6% over the past week, lifted by stronger U.S. consumer engagement and renewed confidence in its AI and cloud strategy.

The company disclosed it repurchased 150 million American depositary shares, equal to 1,197 million ordinary shares, for $11.9 billion in fiscal 2025, trimming its share count by 5.1% after accounting for employee stock issuance. The move is seen as a strategic play to enhance earnings per share and reinforce shareholder value heading into its May 15 earnings report.

Investor sentiment is also building around Alibaba's $53 billion commitment to AI and cloud development over the next three years. The company's cloud unit has shown steady growth and is emerging as a key revenue driver. Meanwhile, Alibaba.com surged to the top of Apple's U.S. App Store in the shopping category, underscoring growing traction in Western markets.

BABA last closed up 4% on Friday, and its stock is approaching key resistance ahead of earnings.

Is BABA Stock a Buy?

Based on the one year price targets offered by 38 analysts, the average target price for Alibaba Group Holding Ltd is $160.51 with a high estimate of $192.57 and a low estimate of $102.17. The average target implies a upside of +27.63% from the current price of $125.76.

Based on GuruFocus estimates, the estimated GF Value for Alibaba Group Holding Ltd in one year is $109.34, suggesting a downside of -13.06% from the current price of $125.76.