Alibaba Group (NYSE:BABA) Trading 2.8% Higher – Time to Buy?

Alibaba Group Holding Limited (NYSE:BABA)’s stock price traded up 2.8% during trading on Tuesday . The company traded as high as $128.79 and last traded at $128.2290. 12,761,029 shares changed hands during trading, an increase of 8% from the average session volume of 11,862,589 shares. The stock had previously closed at $124.71.

Alibaba Group News Roundup

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

• Positive Sentiment: Alibaba’s quarterly revenue increased approximately 9% year over year to about 266.45 billion yuan, supported by stronger e-commerce activity during the “618” shopping festival. Alibaba reports 9% rise in quarterly revenue
• Positive Sentiment: Cloud Intelligence Group revenue surged 45%, reflecting accelerating demand for computing capacity, proprietary models and applications used in AI development. Management is positioning AI as a major growth driver for both cloud and consumer businesses. Alibaba cloud revenue rises 45% even as AI spending weighs on profit
• Neutral Sentiment: Alibaba agreed to sell its entire stake in Lingxi Games to Trustar Capital for an estimated $1.5 billion to more than $2 billion. The transaction could provide cash and reinforce the company’s shift away from gaming toward AI, although the final price and closing details were not disclosed. Alibaba Cashes Out Of Gaming To Double Down On AI
• Negative Sentiment: Profitability was the key disappointment. Reported EPS of $1.01 missed the $1.50 consensus estimate, while net profit fell 76% year over year to 10.54 billion yuan. Heavy spending on AI infrastructure, models and applications—along with broader investment needs—pressured adjusted earnings and margins. Alibaba’s quarterly revenue up 9%, misses adjusted profit due to heavy AI spend
• Negative Sentiment: Multiple securities-fraud lawsuits and related lead-plaintiff notices remain an overhang, with allegations involving AI disclosures and geopolitical risks. These announcements are largely procedural but could increase legal and reputational uncertainty for BABA. BABA Investor Reminder

Analyst Ratings Changes

A number of equities analysts recently issued reports on BABA shares. BNP Paribas Exane initiated coverage on Alibaba Group in a report on Wednesday, April 29th. They issued an “outperform” rating and a $209.00 target price on the stock. Freedom Capital raised Alibaba Group from a “hold” rating to a “strong-buy” rating in a report on Friday, April 24th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Alibaba Group in a research report on Wednesday, May 27th. Morgan Stanley lifted their price target on Alibaba Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Finally, Nomura cut their price objective on Alibaba Group from $207.00 to $178.00 and set a “buy” rating on the stock in a report on Thursday, June 25th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $186.90.

Alibaba Group Price Performance

The company has a market cap of $299.40 billion, a PE ratio of 20.59, a price-to-earnings-growth ratio of 2.37 and a beta of 0.49. The stock has a fifty day moving average price of $113.43 and a 200-day moving average price of $128.65. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.28 and a quick ratio of 1.28.

Insider Activity

In other Alibaba Group news, President J. Michael Evans sold 720,000 shares of Alibaba Group stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $94.95, for a total transaction of $68,364,000.00. Following the transaction, the president owned 28,000 shares of the company’s stock, valued at $2,658,600. The trade was a 96.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, General Counsel Siying Yu sold 6,772 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $12.10, for a total value of $81,941.20. Following the completion of the transaction, the general counsel owned 607,234 shares in the company, valued at $7,347,531.40. This represents a 1.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 920,303 shares of company stock valued at $70,796,370 in the last ninety days. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Capital World Investors boosted its stake in shares of Alibaba Group by 7.7% during the 4th quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock valued at $953,527,000 after buying an additional 466,847 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake 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 acquiring an additional 5,936,847 shares during the last quarter. Fisher Asset Management LLC increased its stake 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 acquiring an additional 42,297 shares during the last quarter. Norges Bank purchased a new stake in shares of Alibaba Group during the fourth quarter worth $594,477,000. Finally, AMF Tjanstepension AB boosted its position in Alibaba Group by 4.1% during the first quarter. AMF Tjanstepension AB now owns 2,206,634 shares of the specialty retailer’s stock valued at $276,844,000 after purchasing an additional 86,613 shares during the last quarter. 13.47% of the stock is owned by hedge funds and other institutional investors.

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.