Erste Group Bank Lowers Earnings Estimates for Alibaba Group

Alibaba Group Holding Limited (NYSE:BABA) – Research analysts at Erste Group Bank reduced their FY2026 earnings estimates for shares of Alibaba Group in a research note issued to investors on Tuesday, March 24th. Erste Group Bank analyst H. Engel now expects that the specialty retailer will post earnings per share of $4.37 for the year, down from their prior forecast of $5.23. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for Alibaba Group’s current full-year earnings is $7.86 per share. Erste Group Bank also issued estimates for Alibaba Group’s FY2027 earnings at $6.59 EPS.

A number of other analysts have also issued reports on the company. Nomura boosted their price target on Alibaba Group from $193.00 to $237.00 and gave the company a “buy” rating in a report on Monday, January 26th. Loop Capital set a $140.00 target price on Alibaba Group in a research report on Tuesday, January 6th. Jefferies Financial Group lowered their target price on Alibaba Group from $225.00 to $212.00 and set a “buy” rating for the company in a report on Thursday, March 19th. Barclays dropped their price target on Alibaba Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a research report on Friday, March 20th. Finally, Robert W. Baird cut their price target on Alibaba Group from $174.00 to $164.00 and set an “outperform” rating on the stock in a research note on Friday, March 20th. Sixteen equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $187.89.

Alibaba Group Stock Performance

Shares of NYSE:BABA opened at $122.71 on Friday. The firm’s 50 day simple moving average is $149.79 and its 200-day simple moving average is $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 has a one year low of $95.73 and a one year high of $192.67. The firm has a market cap of $292.96 billion, a PE ratio of 23.15, a price-to-earnings-growth ratio of 3.11 and a beta of 0.43.

Institutional Trading of Alibaba Group

A number of hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC lifted its stake in shares of Alibaba Group by 40.4% during the 4th 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 purchased a new position in Alibaba Group in the first quarter valued at about $254,000. Coldstream Capital Management Inc. grew its stake in Alibaba Group by 157.6% in the second quarter. Coldstream Capital Management Inc. now owns 6,302 shares of the specialty retailer’s stock valued at $721,000 after purchasing an additional 3,856 shares during the last quarter. Global Retirement Partners LLC bought a new position in Alibaba Group in the second quarter worth about $805,000. Finally, Steward Partners Investment Advisory LLC lifted its position in shares of Alibaba Group by 16.2% during the second quarter. Steward Partners Investment Advisory LLC now owns 48,567 shares of the specialty retailer’s stock valued at $5,508,000 after buying an additional 6,785 shares during the last quarter. Hedge funds and other institutional investors own 13.47% of the company’s stock.

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%

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.