Alibaba Group (NYSE:BABA) Shares Down 2.1% – Here’s Why

Alibaba Group Holding Limited (NYSE:BABA)’s stock price was down 2.1% during trading on Monday . The stock traded as low as $103.91 and last traded at $104.8780. Approximately 12,608,171 shares traded hands during mid-day trading, an increase of 7% from the average session volume of 11,838,374 shares. The stock had previously closed at $107.10.

Alibaba Group News Roundup

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: Recent commentary highlights Alibaba as a trending stock, with analysts still broadly constructive on the name and a consensus “Moderate Buy” rating suggesting Wall Street sees upside from current levels. Alibaba Group Holding Limited (BABA) Is a Trending Stock: Facts to Know Before Betting on It
• Positive Sentiment: Investor interest is being supported by Alibaba’s push into AI, including new robot-focused models and broader “physical AI” initiatives, which could strengthen its cloud and enterprise revenue mix over time. BABA Stock: The Physical AI Race Heats Up as Alibaba Releases New AI Models for Robots
• Positive Sentiment: Some analysis argues Alibaba remains undervalued if AI is the next growth engine, pointing to strong cloud momentum and AI-related products becoming a larger share of cloud revenue. Alibaba: If AI Is The Future, The Largest Cloud Provider In China Should Be A Winner
• Neutral Sentiment: Alibaba disclosed a relatively small lobbying filing tied to e-commerce and SME export promotion; this is unlikely to move the stock on its own. Lobbying Update: $50,000 of ALIBABA GROUP HOLDING LIMITED lobbying was just disclosed
• Negative Sentiment: Shares have been under pressure as investors worry about geopolitical tensions, broader weakness in Chinese stocks, and whether Alibaba’s aggressive AI spending will pay off fast enough. Alibaba Stock Pulls Back: Why Chairman Joe Tsai’s Bold New AI Gambit Has Wall Street Hesitant
• Negative Sentiment: The stock is also trading near 52-week lows, reflecting ongoing concern about China’s economic slowdown and the market’s skepticism toward near-term earnings momentum. Alibaba Stock Is a Compelling Buy as It Drifts Toward 52-Week Lows. Here’s Why.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Robert W. Baird decreased their price target on shares of Alibaba Group from $174.00 to $164.00 and set an “outperform” rating on the stock in a report on Friday, March 20th. HSBC boosted their target price on Alibaba Group from $172.00 to $180.00 in a research report on Thursday, May 14th. JPMorgan Chase & Co. upped their target price on Alibaba Group from $200.00 to $205.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Mizuho raised their price target on Alibaba Group from $190.00 to $195.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Finally, BNP Paribas Exane started coverage on Alibaba Group in a research report on Wednesday, April 29th. They set an “outperform” rating and a $209.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $188.76.

Alibaba Group Stock Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.28 and a current ratio of 1.28. The stock has a market cap of $251.62 billion, a PE ratio of 17.22, a PEG ratio of 1.84 and a beta of 0.48. The company’s 50-day moving average price is $128.75 and its two-hundred day moving average price is $142.06.

Alibaba Group (NYSE:BABA) last announced its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The company had revenue of $35.30 billion during the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. On average, equities research analysts forecast that Alibaba Group Holding Limited will post 6.75 EPS for the current year.

Alibaba Group Dividend Announcement

The company also recently disclosed an annual dividend, which will be paid on Monday, July 13th. Stockholders of record on Thursday, June 11th will be issued a $1.05 dividend. This represents a dividend yield of 93.0%. The ex-dividend date is Thursday, June 11th. Alibaba Group’s dividend payout ratio is presently 16.91%.

Hedge Funds Weigh In On Alibaba Group

A number of large investors have recently modified their holdings of BABA. Capital World Investors raised its stake in shares of Alibaba Group by 7.7% during the fourth quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock worth $953,527,000 after acquiring an additional 466,847 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Alibaba Group by 7,680.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock worth $881,554,000 after purchasing an additional 5,936,847 shares during the period. Fisher Asset Management LLC raised its position in Alibaba Group by 0.8% in the 4th quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer’s stock worth $782,135,000 after purchasing an additional 42,297 shares during the period. Norges Bank bought a new stake in Alibaba Group in the fourth quarter worth $594,477,000. Finally, American Century Companies Inc. lifted its stake in Alibaba Group by 17.7% in the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock worth $533,964,000 after purchasing an additional 448,484 shares during the last quarter. 13.47% of the stock is owned by hedge funds and other institutional investors.

About Alibaba Group

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.