Alibaba Group (NYSE:BABA) Trading Down 3.5% After Analyst Downgrade

Shares of Alibaba Group Holding Limited (NYSE:BABA) fell 3.5% on Thursday after Susquehanna lowered their price target on the stock from $190.00 to $170.00. Susquehanna currently has a positive rating on the stock. Alibaba Group traded as low as $124.59 and last traded at $125.3470. 9,169,600 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 12,584,894 shares. The stock had previously closed at $129.87.

Several other analysts have also recently commented on the company. Mizuho reduced their target price on Alibaba Group from $195.00 to $190.00 and set an “outperform” rating on the stock in a report on Friday, March 20th. Barclays lowered their price target on shares of Alibaba Group from $195.00 to $190.00 and set an “overweight” rating for the company in a report on Friday, March 20th. Citigroup upped their price objective on shares of Alibaba Group from $218.00 to $225.00 and gave the company a “buy” rating in a research note on Wednesday, November 26th. Wall Street Zen cut shares of Alibaba Group from a “hold” rating to a “sell” rating in a research report on Friday, November 28th. Finally, Rosenblatt Securities set a $195.00 target price on shares of Alibaba Group in a research note on Wednesday, November 26th. Sixteen investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Alibaba Group presently has an average rating of “Moderate Buy” and an average target price of $187.89.

Alibaba Group News Summary

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

• Positive Sentiment: Company progress on proprietary AI hardware could materially strengthen cloud margins and reduce geopolitical supply risk — a long-term positive for valuations. Why Alibaba’s New 5nm Chip Could Be a Game Changer
• Positive Sentiment: Analyst moves upward from distress ratings: Zacks and Argus have recently upgraded Alibaba toward “hold”, which can reduce selling pressure from income-focused or mandated-sell funds. Zacks Research / upgrades
• Neutral Sentiment: Sector context — ongoing food-delivery price wars (Meituan/peers) continue to affect sentiment across Chinese tech, which can spill into Alibaba even if impacts are indirect. Meituan Posts Quarterly Loss as Price War Continues
• Neutral Sentiment: Macro / headlines coverage: a mix of “stocks to watch” and broader pieces (Barron’s, Yahoo) keeps Alibaba in investor screens but doesn’t decisively swing sentiment. Barron’s on food-delivery dynamics
• Negative Sentiment: Analyst target cut: Susquehanna lowered its price target from $190 to $170 (even while keeping a “positive” stance), which can remove some upside expectations and weigh on near-term sentiment. Susquehanna price target cut
• Negative Sentiment: Earnings/earnings commentary: coverage highlighting a ~67% decline in non‑GAAP profit tied to large AI/cloud spending is prompting concern about near-term margin erosion and cash deployment. Alibaba Price Target Slashed to $170 as Heavy AI Spending Drags Profits Down 67%
• Negative Sentiment: Investor rotation risk: opinion pieces arguing to sell Alibaba in favor of JD.com highlight capital reallocation trends among China-tech investors — increased rotation can pressure BABA shares. Why I Sold Alibaba To Buy JD.com

Hedge Funds Weigh In On Alibaba Group

A number of institutional investors and hedge funds have recently modified their holdings of the business. Capital World Investors boosted its stake in 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. increased its stake in Alibaba Group by 7,680.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock valued at $881,554,000 after purchasing an additional 5,936,847 shares in the last quarter. Fisher Asset Management LLC raised its holdings in shares of Alibaba Group by 0.8% during the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer’s stock valued at $782,135,000 after purchasing an additional 42,297 shares during the period. Norges Bank bought a new position in shares of Alibaba Group during the 2nd quarter worth about $527,243,000. Finally, American Century Companies Inc. boosted its position in shares of Alibaba Group by 17.7% during the 3rd 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 in the last quarter. 13.47% of the stock is currently owned by institutional investors.

Alibaba Group Stock Performance

The company has a market capitalization of $299.25 billion, a price-to-earnings ratio of 23.65, a P/E/G ratio of 3.08 and a beta of 0.43. The company has a 50 day moving average price of $151.56 and a 200 day moving average price of $158.31. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.33 and a current ratio of 1.33.

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.