Alibaba Group (NYSE:BABA) Trading Down 2.2% Following Analyst Downgrade

Alibaba Group Holding Limited (NYSE:BABA) fell 2.2% on Friday 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 $122.23 and last traded at $122.7120. 8,050,392 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 12,508,782 shares. The stock had previously closed at $125.41.

BABA has been the subject of several other research reports. Freedom Capital downgraded Alibaba Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. Arete Research raised shares of Alibaba Group from a “neutral” rating to a “buy” rating and set a $190.00 price target on the stock in a report on Wednesday, January 21st. Morgan Stanley cut their price objective on shares of Alibaba Group from $200.00 to $180.00 and set an “overweight” rating for the company in a research report on Thursday, January 8th. Mizuho reduced their price objective on shares of Alibaba Group from $195.00 to $190.00 and set an “outperform” rating for the company in a research note on Friday, March 20th. Finally, Zacks Research raised shares of Alibaba Group from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 24th. Sixteen analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $187.89.

More Alibaba Group News

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

A number of institutional investors have recently added to or reduced their stakes in BABA. Brighton Jones LLC lifted its stake in Alibaba Group by 40.4% during the fourth quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer’s stock worth $289,000 after purchasing an additional 981 shares during the last quarter. AQR Capital Management LLC bought a new position in shares of Alibaba Group during the 1st quarter valued at about $254,000. Laurel Wealth Advisors LLC raised its holdings in shares of Alibaba Group by 11,242.0% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 5,671 shares of the specialty retailer’s stock valued at $643,000 after buying an additional 5,621 shares in the last quarter. Advisors Asset Management Inc. raised its holdings in shares of Alibaba Group by 46.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 7,235 shares of the specialty retailer’s stock valued at $821,000 after buying an additional 2,294 shares in the last quarter. Finally, J.W. Cole Advisors Inc. lifted its position in Alibaba Group by 55.7% in the 2nd quarter. J.W. Cole Advisors Inc. now owns 6,497 shares of the specialty retailer’s stock worth $737,000 after buying an additional 2,324 shares during the last quarter. Institutional investors own 13.47% of the company’s stock.

Alibaba Group Stock Down 2.2%

The company has a market cap of $292.96 billion, a P/E ratio of 23.15, a P/E/G ratio of 3.11 and a beta of 0.43. The stock has a 50-day moving average of $149.79 and a two-hundred day moving average of $158.02. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.33 and a current ratio of 1.33.

Alibaba Group Company Profile

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.