Alibaba cloud revenue growth to exceed 50% in FY2028, Jefferies keeps 'buy' rating

Jefferies forecasts Alibaba's cloud revenue to grow over 50% in financial year 2028, driven by strong AI Cloud and Compute services. The bank expects segment margins to improve and external cloud revenue to outpace overall growth. Alibaba's AI Lab and Applications revenue is also expected to rise, with losses narrowing. Overall, Alibaba's total revenue and EBITA are projected to increase, supporting Jefferies' 'buy' rating and highlighting Alibaba as a top pick due to solid execution and accelerating AI business growth.

As of Oct 09, 2026 03:11 WIB, Alibaba Group (BABA) is trading at USD 105.79 on Pluang, showing a 1-day decline of 1.13%. The stock's market cap stands at $267.28 billion with a strong buy sentiment at 83% of Pluang order activity. Despite the recent dip, Alibaba remains a significant player in the consumer cyclical sector with an enterprise value of $249.51 billion.