Alibaba stock price remains in a three-year consolidation. It has remained between the support and resistance levels at $56.50 and $121.37 since 2022 even as its biggest competitors in China like JD.com and Tencent have surged. Still, analysts are optimistic that the BABA stock price will go vertical soon.
Peter Brandt is highly bullish on Alibaba stock price
Wall Street analysts are optmistic that the BABA stock price has more room to go. The average forecast is that the stock will jump to $120, up from the current $103. Some of the most overweight analysts on Alibaba are from companies like Barclays, Baird, and JPMorgan.
Bank of America, Benchmark, and Jefferies have a buy rating. Most of these analysts believe that Alibaba share price is a big bargain and that it will bounce back in the coming years. They cite its strong market share across multiple sectors in China and the ongoing share repurchases that have led to a big jump in its earnings per share.
Peter Brandt, a veteran trader and author, has maintained a highly bullish view of the BABA stock price, noting that it may double from here. In an X post, he said that the stock was one of the promising charts he had seen in a long time, and that it may surge to $200 next. He pointed to an ascending triangle pattern that has been forming in the past few months.
The chart of $BABA is one of the most promising charts I have seen in a long time. This is a stock I am already invested in. I think $200 is the next stop
Earnings forthcoming though
BABA stock technical analysis
The weekly chart shows that the Alibaba stock price bottomed at $56.50 in 2022 as Beijing tightened its screws on the company. Since then, it has remained above the ascending trendline that links the lowest levels since 2022.
The stock has moved above the 50-week Exponential Moving Average (EMA), and is now attempting to flip the 200-week average. It is now nearing the crucial resistance level at $121.37, the upper side of the range.
There are signs that the Alibaba share price has moved into the accumulation phase of the wyckoff Theory, which is characterized by consolidation and sluggish volume. This phase is followed by the markup, where an asset has more demand and supply.
Therefore, if this theory works out well, there are signs that it will bounce back and hit the 50% retracement point at $183, which is about 76% above the current level. A break above that price will bring the 61.8% retracement point into view. This retracement point at $212 is about 105% above the current level. A drop below the support level at $80 will invalidate the bullish BABA stock outlook.
Read more: Buy Alibaba stock for a 50% return over the next twelve months: Loop Capital
Alibaba earnings ahead
The next important catalyst for Alibaba share price will be its earnings on February 20th. These numbers are expected to show that its revenue growth continued, with the quarterly figure coming in at 278b billion yuan, a 7% increase from the same period a year earlier.
Alibaba has a long record of beating analysts estimates, meaning that its revenue and earnings will likely be better than expectation.
A potential catalyst is its cloud and AI business, especially with rumors that it may invest in DeepSeek AI, a company that has disrupted the industry. Such a move would signal more growth ahead.
The company has also become a big player in the AI space, especially with the recent release of Qwen 2.5, which it believes is more advanced than DeepSeek. Therefore, with its American AI rivals surging, there is a likelihood that it too will soar in the coming months.
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