Is $140 next for Alibaba stock as company readies another $22 billion for stock buybacks

Since late August, there has been no shortage of positive developments for the Chinese technology and e-commerce giant Alibaba (NYSE: BABA).

The most recent news likely to provide strong tailwinds to BABA shares is the company’s latest update on its stock buyback program. 

To be precise, Alibaba reported it had spent another $4.1 billion during the third quarter of 2024, bringing the 12-month total to $17.6 billion.

Share buyback programs tend to be welcomed by investors as they help boost demand for the affected stock, increasing its value. 

Additionally, traders eying Alibaba have much to look forward to since the company has earmarked another $22 billion for stock buybacks under its current plan, meaning there is significant room for growth ahead.

Alibaba’s most recent buyback updates strengthened hurricane-force BABA tailwinds

The most recent buyback update could prove particularly impactful as it reinforces the ongoing BABA stock rally. 

Indeed, after struggling for over a year, the Chinese giant’s shares entered a strong uptrend in mid-September and are 39.89% up in the last 30 days to their press time price of $115.04.

Considering the recent uptrend has ensured BABA shares are 53.83% in the green in the year-to-date (YTD) chart and trading far above the $68-88 range they were at for most of 2024, the broad Wall Street optimism about the company appears more than justified.

Indeed, even the most bullish 12-month price target – set at $141.93, per the data retrieved from TradingView on October 2 – appears well within reach.

Alibaba stock benefits from Chinese market rally, clearing regulatory hurdles

Though Alibaba stock’s current rally falls within the broader surge for Chinese stocks – a surge driven by a string of government stimuli, including an interest rate cut, a $114 billion equities injection, and new banking rules designed to make investing easier – it has also been driven by developments specific to the company.

Early in September, the Chinese government ended its long-standing probe into Alibaba over alleged monopolistic tendencies and other malpractices. 

As the investigation ended with Beijin praising the e-commerce giant’s restructuring efforts, its conclusion removed a major cause for concern among BABA investors.

Finally, Alibaba has also been advancing on the business side as it began a collaboration with one of the most prominent firms of 2024 – the semiconductor giant Nvidia (NASDAQ: NVDA) – on computing services and autonomous driving solutions, per a September 21 South China Morning Post report.