Alibaba Group (BABA) is intensifying its focus on AI with plans to revamp its mobile AI app, transitioning from “Tongyi” to “Qwen.” This updated app, aimed at competing with ChatGPT, will incorporate new “agent-AI” shopping features, enhancing user experience on Taobao and other platforms. Initially free, Alibaba seeks to build a substantial user base before monetizing consumer AI services, marking a shift from its traditional business customer focus. Despite trailing competitors like Tencent (TCEHY) and ByteDance, Alibaba aims to leverage its e-commerce ecosystem to increase traffic to Qwen. CEO Eddie Wu emphasized AI’s strategic importance, highlighting past enhancements to the Quark app as foundational. Alibaba’s recent quarterly results signaled growth in AI and cloud sectors, setting the stage for Qwen to potentially attract daily users and revenue. Investors are keen to learn more about user adoption and AI strategies in the upcoming Q2 FY26 earnings report, which could influence stock performance. Currently, BABA stock holds a Strong Buy consensus rating with a target price of $165.61, indicating a 20.76% upside potential.
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