Compass Verdict

Is Alibaba Group (NYSE:BABA) a buy in 2026?

Yes, on balance. The Compass leans toward accumulating Alibaba Group at current levels.

Qwen is the second AI story in the world after OpenAI, and you're paying e-commerce multiples to own it.

Compass Score 61/100Favorable$119.70

Where BABA is headed

By mid-2027, Alibaba won't be discussed as a Chinese e-commerce dinosaur. It'll be discussed as the only company on earth running a top-three foundation model, a hyperscale cloud, a payments rail, a logistics network, and the largest commerce graph in Asia, all under one roof. Qwen has gone from open-source curiosity to the default model for every Chinese enterprise that can't legally touch OpenAI, and increasingly the default model for emerging markets (Southeast Asia, the Gulf, parts of Latin America) that don't want to feed their data into American APIs. Cloud revenue, growing in the high-20s annualised by FY27, starts to look less like Aliyun catching up to AWS and more like a parallel AI economy forming around a different stack.

Read the full Compass Direction on BABA

The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $119.70).

See the full BABA analysis

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Frequently asked questions

Is Alibaba Group (NYSE:BABA) a buy in 2026?

Yes, on balance. The Compass leans toward accumulating Alibaba Group at current levels. Qwen is the second AI story in the world after OpenAI, and you're paying e-commerce multiples to own it.

What is BABA's Compass Score?

Alibaba Group scores 61/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.

What is the price target for BABA?

Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the BABA page.

Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.