Alibaba stock is set to end September with a bang. Here’s why

Alibaba Group Holding (BABA) rose about 3% in Friday’s session, based on recent gains that put the Chinese e-commerce giant on track for its best monthly share price performance in nearly two years.

Indeed, Alibaba shares are up more than 29% since the beginning of September, putting them on track for their biggest monthly gain since the 33.8% price return they generated in December 2022.

BABA began its latest growth streak following the company’s strong second-quarter results on August 15. The surge intensified in mid-September after Alibaba released more than 100 artificial intelligence (AI) models and a new text-to-video tool.

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Stocks recently rallied 22% since these AI announcements, driven by news of massive stimulus measures from the People’s Bank of China, which lowered its short-term interest rate and lowered the amount of capital reserves banks must hold, among others. initiatives.

David Tepper all-in on Alibaba stock

The bullish outlook presented by billionaire investor David Tepper has only helped BABA stock rise.

“I thought what the Fed did last week would lead to monetary easing in China, but I didn’t know they would pull their guns so hard,” Tepper said in a recent interview with CNBC. “We have a little longer, more Chinese shares.”

Tepper went on to say that he bought a little more of “everything,” including Alibaba.

Even before the post-Fed purchase, Alibaba held the largest position in Tepper’s portfolio at his hedge fund Appaloosa Management, accounting for more than 12% of the portfolio as of June 30, according to WhaleWisdom.

What does Wall Street think about BABA?

Tepper is not the only one who is positive about Alibaba stock. Wall Street is also bullish on the e-commerce giant. According to S&P Global Market Intelligencethe analyst consensus is: definitely buy.

Financial services company Jefferies has a Buy rating on BABA stock and a $116 price target.

“We believe Alibaba will have many growth drivers in the coming years and its core market will be strong cash cow which enjoys constant growth dynamics thanks to the increase in consumption in China,” said the Jefferies analyst Thomas Chong in a note dated September 19.

Chong went on to note that BABA is “the center of the consumption-based economy and online shopping” in China, and its cloud computing unit has “clear market leadership as the backbone of digitalization across industries.”