Alibaba Group Holding Limited (BABA): one to watch?

Cheap-looking cloud/AI growth story, but massive capex, regulatory friction and fresh legal/IP allegations make timing uncertain — wait for clarity.

👀 WATCH Fundamentals58/100

Down 62% from its all-time high of $309.92 — now $116.56

Why BABA dropped

Alibaba's cloud business is genuinely accelerating on AI demand, but the stock has been volatile lately due to Anthropic accusing it of illicitly accessing Claude, a related securities class-action investigation, Beijing regulators publicly rebuking Alibaba (and JD.com) over misleading discount promotions, and heavy AI infrastructure spending crushing near-term profits.

Fwd P/E 12.8Op margin 1.0%Rev growth 2.9%Debt/equity 25.0%Analyst upside 63.3%

How this scored 58/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.1%

✅ Generates cash Free cash flow $-44.1B

✅ Not drowning in debt Debt/equity 25.0% (limit 200%)

✅ Can pay its bills Current ratio 1.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 6/25

Operating margin 1.0% 0/9

Net profit margin 10.1% 4/8

Return on equity 9.2% 2/8

Growth Is it getting bigger, or dying? 18/25

Revenue growth 2.9% 2/9

Earnings growth 104.1% 8/8

Expected profit change 40.2% 8/8

Value Is it cheap right now? 23/25

Forward P/E 12.8 8/10

PEG ratio 0.5 8/8

Analyst target upside 63.3% 7/7

Balance sheet Will it survive? 11/25

Debt / equity 25.0% 10/10

Current ratio 1.3 2/8

Free cash flow $-44.1B 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-23. Research only — not financial advice.