Alibaba Group (NYSE:BABA) Stock Price Down 2.8% on Analyst Downgrade

Alibaba Group Holding Limited (NYSE:BABA) shares dropped 2.8% during trading on Wednesday after Morgan Stanley lowered their price target on the stock from $200.00 to $180.00. Morgan Stanley currently has an overweight rating on the stock. Alibaba Group traded as low as $146.61 and last traded at $146.7340. Approximately 12,510,029 shares changed hands during trading, a decline of 10% from the average daily volume of 13,971,088 shares. The stock had previously closed at $150.90.

Several other analysts have also recently commented on BABA. Sanford C. Bernstein reduced their price target on Alibaba Group from $200.00 to $190.00 and set an “outperform” rating for the company in a report on Wednesday, November 26th. Erste Group Bank raised shares of Alibaba Group from a “hold” rating to a “buy” rating in a research report on Friday, October 3rd. Robert W. Baird boosted their target price on Alibaba Group from $153.00 to $174.00 and gave the stock an “outperform” rating in a report on Wednesday, September 24th. Benchmark reissued a “buy” rating and issued a $195.00 price objective on shares of Alibaba Group in a research report on Tuesday, November 25th. Finally, Freedom Capital cut Alibaba Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Seventeen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $191.84.

Alibaba Group News Summary

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

• Positive Sentiment: Morgan Stanley keeps an “overweight” rating and a $180 price target (down from $200) — still implying roughly mid‑teens upside from the current level, which supports buy-side interest despite the trimmed target.
• Positive Sentiment: Bullish technical indicators across several large Chinese stocks, including Alibaba, are being noted by market strategists — technical momentum can attract momentum funds and short‑covering. Chinese Stock Charts Reach a Turning Point. What to Watch.
• Positive Sentiment: Product/AI update: Alibaba’s Amap rolled out AI‑powered 3D virtual tours for offline destinations — a tangible example of monetizable AI/features that can help user engagement and ads/maps revenue over time. Alibaba’s Amap rolls out AI-powered 3D virtual tours for offline destinations
• Neutral Sentiment: Industry/peer context: commentary about Chinese stock technical turnarounds and a MarketBeat piece on Baidu’s strategic moves are background for the sector but don’t directly change Alibaba’s fundamentals. Why Baidu’s Quiet Spin-Off Could Unlock a Major Re-Rating (BABA)
• Negative Sentiment: Pomerantz LLP is investigating claims on behalf of Alibaba investors — potential litigation or investigation can increase legal risk and weighing on sentiment. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Alibaba Group Holding Limited – BABA
• Negative Sentiment: Analyst caution: Freedom Capital downgraded Alibaba from “strong‑buy” to “hold,” reducing immediate buy‑side conviction from that shop. Zacks
• Negative Sentiment: Coverage highlighting regulatory headwinds and investor sentiment concerns, plus commentary that strategic bets are weighing on sentiment — these narratives increase tail‑risk premium for the stock. Regulatory Headwinds and Analyst Caution Weigh on Alibaba Shares Alibaba’s Strategic Gamble Weighs on Investor Sentiment
• Negative Sentiment: Short‑term performance note: a MarketWatch piece flagged that Alibaba underperformed peers on Tuesday, a datapoint that can pressure sentiment among relative‑strength traders. Alibaba Group Holding Ltd. ADR underperforms Tuesday when compared to competitors

Hedge Funds Weigh In On Alibaba Group

Several institutional investors and hedge funds have recently made changes to their positions in the business. Kingstone Capital Partners Texas LLC raised its holdings in Alibaba Group by 1,349,768.3% in the second quarter. Kingstone Capital Partners Texas LLC now owns 49,013,718 shares of the specialty retailer’s stock valued at $5,558,646,000 after acquiring an additional 49,010,087 shares in the last quarter. Capital World Investors increased its position in shares of Alibaba Group by 1,074.9% in the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock worth $1,079,229,000 after purchasing an additional 5,524,354 shares during the last quarter. Norges Bank acquired a new stake in shares of Alibaba Group in the 2nd quarter valued at about $527,243,000. Assenagon Asset Management S.A. acquired a new stake in Alibaba Group during the second quarter valued at approximately $227,567,000. Finally, Alkeon Capital Management LLC acquired a new position in shares of Alibaba Group in the 2nd quarter worth $184,291,000. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

Alibaba Group Price Performance

The stock’s fifty day moving average price is $156.19 and its 200-day moving average price is $145.54. The firm has a market cap of $368.89 billion, a price-to-earnings ratio of 21.35, a price-to-earnings-growth ratio of 2.27 and a beta of 0.37. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.46 and a quick ratio of 1.46.

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.