Wall Street Stays Bullish on Alibaba Despite Profit Drop: Key Analyst Price Targets Today

Alibaba Group Holding Ltd (NYSE:BABA) reported Q3 FY2026 net connected March 19, 2026, and the results handed Wall Street a genuinely hard read: non-GAAP nett income fell 67% year-over-year to $2.39 cardinal portion Cloud Intelligence Group gross accelerated 36% to $6.19 billion. Three analysts maintained bullish terms targets good supra existent levels, but the banal inactive fell, leaving investors to measurement a deliberate profitability sacrifice against 1 of the astir credible AI maturation stories successful China.

All 3 firms held their targets contempt the header nett decline, pointing to unreality acceleration arsenic the awesome that matters. Barclays specifically flagged the "Openclaw" agentic AI motorboat arsenic a imaginable game-changer for endeavor monetization, arguing that unreality pricing increases of up to 34% awesome a genuine displacement from infrastructure buildout to gross extraction. Morgan Stanley expert Gary Yu echoed this view, saying the results "show the explosive AI request from beardown token usage" and that "the biggest accusation is that it further strengthens commercialization of AI." Citi's $200 target, the astir assertive of the three, implies the marketplace is importantly undervaluing Alibaba's full-stack AI presumption astatine existent prices.

The header miss was real. Revenue came successful astatine $40.73 billion, up conscionable 2% year-over-year, missing expectations, portion income and selling expenses surged from 15.2% to 25.3% of gross arsenic the institution aggressively funded speedy commerce expansion. Free currency travel dropped 71% year-over-year to $1.622 billion. Stripping retired divested businesses, like-for-like gross maturation was 9% -- a much honorable representation of the underlying business. Quick commerce was a standout, with Taobao Instant Commerce gross up 56% to $2.98 billion.