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

Shares of Alibaba Group Holding Limited (NYSE:BABA) were down 3.5% during mid-day trading 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. Approximately 9,169,600 shares traded hands during trading, a decline of 27% from the average daily volume of 12,584,894 shares. The stock had previously closed at $129.87.

Other equities analysts have also recently issued research reports about the stock. Robert W. Baird lowered their target price on shares of Alibaba Group from $174.00 to $164.00 and set an “outperform” rating on the stock in a research note on Friday, March 20th. Citigroup increased 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. Zacks Research upgraded shares of Alibaba Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday. Mizuho dropped 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. Finally, Rosenblatt Securities set a $195.00 target price on Alibaba Group in a research report on Wednesday, November 26th. Sixteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Alibaba Group presently has an average rating of “Moderate Buy” and a consensus price target of $187.89.

Alibaba Group News Roundup

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

• Positive Sentiment: Sources say Alibaba plans to place orders for Huawei’s new AI chip after successful testing, which could lower costs, deepen Alibaba’s domestic AI stack and reduce dependence on foreign chips. Exclusive: Huawei’s new AI chip find favour with ByteDance, Alibaba which plan to place orders, sources say
• Positive Sentiment: Analyst support: Argus recently upgraded BABA (leading to a short-term uptick), reflecting some analyst conviction in the stock despite near-term headwinds. Alibaba Group (NYSE:BABA) Upgraded at Argus
• Positive Sentiment: Zacks moved BABA from “strong sell” to “hold,” reducing immediate sell-side pressure and signaling improved sentiment from that broker. Zacks Research upgrade
• Positive Sentiment: Product/AI progress: Alibaba is rolling out “Accio,” an agentic AI for automating supply-chain tasks for SMBs — a sign management is pushing AI-driven revenue opportunities. BABA’s Accio Pushes AI From Chat to Execution
• Neutral Sentiment: Price-target dynamics: Susquehanna cut its price target to $170 (citing heavy AI spending) but kept a positive stance — mixed signal: upside remains but margin risks persist. Price target lowered to $170
• Neutral Sentiment: Valuation context: Recent analyses highlight Alibaba’s AI/cloud push and regulatory changes (e.g., delivery rules) as offsetting factors to heavy investment-driven margin pressure — longer-term story still depends on cloud/AI execution. Assessing Alibaba Group Holding valuation after China’s delivery rules and new AI chip and cloud push
• Negative Sentiment: Analyst estimate cuts: Erste Group reduced FY2026 and FY2027 EPS forecasts materially, signaling weaker near-term profit expectations and adding downward pressure on sentiment. MarketBeat: Analyst estimate changes
• Negative Sentiment: Zacks added BABA to its Rank #5 (Strong Sell) list — a headline that can trigger short-term selling and amplify volatility despite other upgrades. New Strong Sell Stocks for March 27th
• Negative Sentiment: Profit pressure: Coverage and headlines note heavy AI spending has driven a steep profit decline and prompted price-target cuts — this underpins the negative near-term earnings narrative. Alibaba Price Target Slashed to $170 as Heavy AI Spending Drags Profits Down 67%

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Traphagen Investment Advisors LLC lifted its position in shares of Alibaba Group by 2.0% during the 3rd quarter. Traphagen Investment Advisors LLC now owns 3,018 shares of the specialty retailer’s stock valued at $539,000 after acquiring an additional 59 shares during the last quarter. Bruce G. Allen Investments LLC grew its holdings in shares of Alibaba Group by 26.4% in the 3rd quarter. Bruce G. Allen Investments LLC now owns 302 shares of the specialty retailer’s stock worth $54,000 after acquiring an additional 63 shares during the last quarter. Bluesphere Advisors LLC raised its position in shares of Alibaba Group by 2.2% during the third quarter. Bluesphere Advisors LLC now owns 3,023 shares of the specialty retailer’s stock worth $540,000 after purchasing an additional 64 shares during the period. Richardson Financial Services Inc. raised its position in shares of Alibaba Group by 34.4% during the third quarter. Richardson Financial Services Inc. now owns 254 shares of the specialty retailer’s stock worth $45,000 after purchasing an additional 65 shares during the period. Finally, Transcend Capital Advisors LLC lifted its holdings in shares of Alibaba Group by 1.0% during the third quarter. Transcend Capital Advisors LLC now owns 6,661 shares of the specialty retailer’s stock valued at $1,191,000 after purchasing an additional 66 shares during the last quarter. Institutional investors and hedge funds own 13.47% of the company’s stock.

Alibaba Group Price Performance

The stock has a 50-day moving average of $149.79 and a two-hundred day moving average of $157.95. The firm has a market cap of $292.96 billion, a price-to-earnings ratio of 23.15, a price-to-earnings-growth ratio of 3.18 and a beta of 0.43. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.22.

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.