Alibaba Group (NYSE:BABA) Shares Down 2.2% After Analyst Downgrade

Alibaba Group Holding Limited (NYSE:BABA)’s share price was down 2.2% during mid-day trading 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. Approximately 8,050,392 shares were traded during trading, a decline of 36% from the average daily volume of 12,508,782 shares. The stock had previously closed at $125.41.

BABA has been the subject of several other reports. Robert W. Baird cut their target price on shares of Alibaba Group from $174.00 to $164.00 and set an “outperform” rating for the company in a research report on Friday, March 20th. Wall Street Zen downgraded shares of Alibaba Group from a “hold” rating to a “sell” rating in a research report on Friday, November 28th. Barclays decreased their target price on Alibaba Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a report on Friday, March 20th. Erste Group Bank downgraded Alibaba Group from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. Finally, Arete Research upgraded Alibaba Group from a “neutral” rating to a “buy” rating and set a $190.00 price target for the company in a research report on Wednesday, January 21st. Sixteen analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $187.89.

Trending Headlines about Alibaba Group

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

• Positive Sentiment: China AI spend/partnership — Alibaba plans to place orders and test Huawei’s new AI chip, a sign it may diversify away from Nvidia and secure lower-cost domestic AI capacity. Huawei chip adoption
• Positive Sentiment: Analyst upgrade buzz — Argus/other outlets reported an analyst upgrade that briefly pushed the stock higher, signaling some buy-side confidence in Alibaba’s longer-term positioning. Argus upgrade
• Positive Sentiment: Product/AI progress — Alibaba is rolling out Accio, an agentic AI for supply-chain automation, demonstrating execution on AI initiatives that could drive future revenue expansion. Accio AI rollout
• Neutral Sentiment: Mixed analyst signals — Susquehanna cut its price target (to $170) citing heavy AI spending and profit pressure but retained a positive rating; this is a mixed signal that both underscores risk and still implies upside. Susquehanna PT cut
• Negative Sentiment: Analyst earnings cuts — Erste Group trimmed FY2026 and FY2027 EPS estimates for Alibaba, reflecting slower near-term profit recovery amid heavy AI/cloud spending. Erste Group estimate cuts
• Negative Sentiment: Sell-rank action — BABA was added to Zacks’ Rank #5 (Strong Sell) list in recent headlines, which can pressure sentiment and trigger short-term selling. Zacks Strong Sell listing
• Negative Sentiment: Competitive/cloud concerns — A Zacks analysis contrasted Oracle’s accelerating cloud/AI momentum with Alibaba’s recent revenue and profit pressures, suggesting Alibaba may lag peers in cloud monetization. Oracle vs Alibaba analysis

Hedge Funds Weigh In On Alibaba Group

Several large investors have recently made changes to their positions in BABA. Capital World Investors lifted its holdings in Alibaba Group by 7.7% in the 4th quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock worth $953,527,000 after purchasing an additional 466,847 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Alibaba Group by 7,680.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock worth $881,554,000 after buying an additional 5,936,847 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in shares of Alibaba Group by 0.8% in the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer’s stock worth $782,135,000 after buying an additional 42,297 shares in the last quarter. Norges Bank bought a new position in shares of Alibaba Group during the second quarter worth $527,243,000. Finally, American Century Companies Inc. increased its holdings in Alibaba Group by 17.7% in the 3rd quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock valued at $533,964,000 after acquiring an additional 448,484 shares during the last quarter. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

Alibaba Group Stock Performance

The business’s fifty day simple moving average is $150.65 and its 200-day simple moving average is $158.08. The company has a market capitalization of $292.96 billion, a P/E ratio of 23.15, a P/E/G ratio of 3.18 and a beta of 0.43. 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.