Alibaba Stock Looks Undervalued — And Here's a 1.9% Monthly Play While You Wait

Court: S.D. New York

Case: 1:20-cv-09568

📉 BABA Drops Below $110 — But Analysts Still See Big Upside

• BABA is trading at $108.45, down sharply from its $134.05 peak in May, as U.S.–China tariff pressure returns under Trump-era rhetoric.
• Analyst EPS forecasts have dropped from $10.24 to $9.20, pushing down valuations — but opening the door for contrarian plays.
• Based on a forward P/E of 13.2x, the stock has a price target of $131.47 — a potential +21.2% upside.
• Even with a conservative 11.82x multiple, the target is $117.73 — still an 8.6% gain from current levels.

🧾 Analyst Consensus: Still Bullish

• Average price targets:Yahoo Finance: $162.17Stock Analysis (14 analysts): $152.16AnaChart (22 analysts): $149.21
• Even the lowest of these implies a +37.6% upside over today’s price.
• Combining all target methods yields a blended price target of $133.47, or +23% upside from $108.45.

💸 Income Strategy: Short $100 Strike Puts (Aug. 22 Expiry)

• One low-risk way to play BABA now is to short out-of-the-money (OTM) puts:Aug 22 $100 strike → $1.91 premiumYield: 1.91% in 39 days (collateral: $10,000)Breakeven = $98.09 → 9.5% downside protectionImplied assignment probability (delta): just 23%

📈 If BABA rebounds to the $133.47 blended target, that’s a +36% upside from the $98.09 breakeven.

⚖️ Reminder: BABA Just Settled $433.5M Over Ant Group IPO

• Alibaba also finalized a $433.5M settlement for misleading investors over Ant Group’s failed IPO and regulatory exposure.
• Lawsuit followed:Nov 2020: IPO abruptly canceled by regulatorsBABA fell 8% in one day, then 13% the nextApr 2022: Class action filedJuly 2025: Settlement approved

📢 Are you a BABA shareholder impacted by the Ant Group IPO fallout?

📝 File your claim HERE.