The bank cites stabilizing consumption and earnings recovery potential as catalysts for Alibaba shares.
Goldman Sachs designated Alibaba Group Holding Ltd (BABA) as its top China internet stock for the second half of the year. The bank expects the company to benefit from stabilizing consumption trends and an anticipated earnings recovery by year-end, positioning it as a leader in China’s cloud and data center sector.
Alibaba’s earnings-per-share downgrade cycle is nearing a bottom, according to Goldman, with any rebound likely to support share prices. The firm’s dominance in e-commerce, cloud computing, and logistics underpins its growth outlook amid broader market uncertainties.
Chinese authorities have opposed the U.S. Pentagon’s decision to add Alibaba to a list of firms allegedly supporting China’s military, urging Washington to reverse the move. The geopolitical tension adds a layer of risk to BABA’s near-term performance.