Key Stats for Alibaba Stock
- Price change for Alibaba stock in last 6 months: -24%
- $BABA Stock Price as of Oct. 26: $100
- 52-Week High: $183
- $BABA Stock Price Target: $186
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What Happened?
A US federal judge sided with Alibaba (BABA) on Monday and granted a preliminary injunction.
It bars the US government from denying Pentagon contracts to companies because of their ties to firms that lobby for Alibaba.
Here is the background. Alibaba sued in June after the Pentagon added it to a list of companies it says aid China’s military. Baidu and BYD are also on the list.
Alibaba says the designation has “no basis in fact or law,” and denies any military ties.
The ruling clears one obstacle. Alibaba can now keep US lobbyists who also represent Pentagon contractors.
It had fired dozens of Washington lobbyists after the June action, according to a source.
The designation is not a formal sanction and limits Pentagon contracts with listed firms. From 2027, it also limits purchases of their products through third parties.
The injunction does not remove Alibaba from the list and the China-based company is still fighting that in court.
Other Chinese firms are pushing back too. WuXi AppTec won an injunction in August and DJI’s appeal sent its case back to a lower court.
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What the Market Is Telling Us About Alibaba Stock
The ruling only helps Alibaba argue its case more freely.
The business is moving in the right direction. In the June quarter, revenue rose 9% to RMB 269 billion as cloud revenue from external customers grew 45%.
AI-related product revenue has grown triple digits for 12 straight quarters.
Adjusted EBITDA fell 30%, while free cash flow was an outflow of RMB 44.7 billion. Capital spending was RMB 67.7 billion as Alibaba builds out AI infrastructure.
Management says AI is now its most certain growth engine and expects cloud growth to speed up in coming quarters. For Alibaba stock, the legal fight is a side risk to that story.
Anyone following Alibaba stock should watch the court case over the list.
The 2027 limit on indirect purchases is a key date. Alibaba stock could also react to news from other listed firms, since their cases may set the tone.
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So what is Alibaba stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
