Alibaba Group (NYSE:BABA) Shares Down 2.3% Following Analyst Downgrade

Alibaba Group Holding Limited (NYSE:BABA)’s share price fell 2.3% on Friday 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 $148.52 and last traded at $150.9330. 11,372,438 shares changed hands during trading, a decline of 23% from the average session volume of 14,744,654 shares. The stock had previously closed at $154.47.

Other equities analysts have also issued research reports about the company. Sanford C. Bernstein lowered their price objective on Alibaba Group from $200.00 to $190.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 26th. Freedom Capital cut shares of Alibaba Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. 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 report on Wednesday, November 26th. Macquarie reaffirmed an “outperform” rating on shares of Alibaba Group in a research note on Tuesday, November 25th. Finally, Robert W. Baird raised their price target on shares of Alibaba Group from $153.00 to $174.00 and gave the stock an “outperform” rating in a report on Wednesday, September 24th. Seventeen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $191.84.

Key Alibaba Group News

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

• Positive Sentiment: Reports that Beijing is moving toward approving NVIDIA H200 imports bolstered hopes Alibaba can secure advanced AI chips for Alibaba Cloud and generative‑AI initiatives; traders lifted the stock on that news. Alibaba Steps Up AI Race With Potential Nvidia Mega Order
• Positive Sentiment: Coverage highlighting Alibaba’s positioning as an emerging‑markets leader and its AI/cloud investments framed the H200 access story as a meaningful catalyst for longer‑term growth. If Emerging Markets Outperform, This Stock Could Lead the Charge (MarketBeat)
• Positive Sentiment: Technical commentary (Barron’s) showing bullish chart patterns reinforced buyer interest after the recent rebound off the ~$150 support area. Chinese Stock Charts Reach a Turning Point (Barron’s)
• Neutral Sentiment: Morgan Stanley trimmed its price target (from $200 to $180) but kept an overweight rating — a mixed signal that reduces upside math while leaving institutional conviction intact. Finviz (Morgan Stanley price target note)
• Neutral Sentiment: Macro/legal overhangs could still matter: a Supreme Court decision on tariffs and ongoing trade policy uncertainty are being watched for potential cost or access impacts on cross‑border chip flows. Wall Street Breakfast Podcast: Tariffs On Decision Watch (Seeking Alpha)
• Negative Sentiment: Two major banks recently slashed their price targets on Alibaba, which pressured sentiment and reduces analyst‑driven upside expectations in the near term. Alibaba (BABA) Stock: Why Two Major Banks Just Slashed Their Price Targets
• Negative Sentiment: Freedom Capital cut BABA to a hold, and there are fresh investor‑class action inquiries (Pomerantz), adding legal and sentiment risk that can weigh on the stock until resolved. Alibaba Group (NYSE:BABA) Cut to Hold at Freedom Capital Pomerantz investor investigation

Institutional Investors Weigh In On Alibaba Group

A number of large investors have recently modified their holdings of the company. First Heartland Consultants Inc. lifted its holdings in Alibaba Group by 14.2% during the 4th quarter. First Heartland Consultants Inc. now owns 4,151 shares of the specialty retailer’s stock worth $608,000 after buying an additional 517 shares during the last quarter. Diversified Trust Co. lifted its stake in Alibaba Group by 6.7% during the fourth quarter. Diversified Trust Co. now owns 1,392 shares of the specialty retailer’s stock worth $204,000 after purchasing an additional 87 shares during the last quarter. 180 Wealth Advisors LLC boosted its holdings in Alibaba Group by 8.8% in the fourth quarter. 180 Wealth Advisors LLC now owns 9,035 shares of the specialty retailer’s stock valued at $1,324,000 after purchasing an additional 732 shares in the last quarter. Hardin Capital Partners LLC boosted its holdings in Alibaba Group by 1.3% in the fourth quarter. Hardin Capital Partners LLC now owns 6,672 shares of the specialty retailer’s stock valued at $978,000 after purchasing an additional 83 shares in the last quarter. Finally, Sanders Morris Harris LLC purchased a new position in Alibaba Group in the fourth quarter valued at approximately $2,890,000. 13.47% of the stock is owned by hedge funds and other institutional investors.

Alibaba Group Trading Down 2.3%

The company has a market cap of $360.14 billion, a price-to-earnings ratio of 20.85, a PEG ratio of 2.34 and a beta of 0.37. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.23. The business’s fifty day simple moving average is $155.81 and its two-hundred day simple moving average is $146.00.

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.