Alibaba Group (NYSE:BABA) Stock Price Down 2.4% – Should You Sell?

Alibaba Group Holding Limited (NYSE:BABA) shares fell 2.4% during trading on Thursday . The company traded as low as $121.45 and last traded at $122.1990. 11,106,637 shares changed hands during trading, a decline of 7% from the average daily volume of 11,906,027 shares. The stock had previously closed at $125.22.

Alibaba Group News Roundup

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

• Positive Sentiment: Cloud and AI expansion: Alibaba Cloud plans to more than double its global modular data-center capacity, supporting longer-term cloud growth. Alibaba also released the open weights for its Qwen3.8 model under a commercial-focused license, a strategy intended to expand platform adoption while preserving monetization opportunities. Alibaba Cloud data center expansion Alibaba Qwen3.8 license analysis
• Neutral Sentiment: Results approaching: Alibaba is expected to report earnings on Thursday. Investors will focus on cloud revenue growth, AI-related spending and evidence that consumer demand is improving. Market commentary describes Alibaba’s cloud performance as a key indicator for China’s broader internet and technology sector. Alibaba earnings announcement
• Negative Sentiment: Class-action litigation remains an overhang: Multiple law firms are promoting a securities-fraud lawsuit covering investors who purchased Alibaba securities from June 26, 2025, through June 24, 2026. The complaint alleges Alibaba failed to disclose that it could be classified as a Chinese military company and exposed to U.S. restrictions, as well as allegations involving unauthorized AI “distillation.” The lead-plaintiff deadline is October 5, 2026. These are allegations, not established findings, but the volume of notices adds reputational, regulatory and potential financial-risk concerns. Alibaba investor lawsuit notice Alibaba lawsuit allegations and deadline
• Negative Sentiment: Profit expectations were trimmed: Erste Group Bank reduced its FY2027 EPS estimate to $5.66 from $5.84 and its FY2028 estimate to $8.21 from $8.46, signaling cautious expectations for Alibaba’s future profitability. Alibaba analyst earnings estimates

Analyst Ratings Changes

A number of equities research analysts have issued reports on BABA shares. HSBC set a $170.00 target price on shares of Alibaba Group in a research report on Thursday, July 9th. Mizuho boosted their price target on shares of Alibaba Group from $190.00 to $195.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Barclays upped their price target on shares of Alibaba Group from $186.00 to $195.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. JPMorgan Chase & Co. lifted their price objective on Alibaba Group from $200.00 to $205.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Finally, Wall Street Zen upgraded Alibaba Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Alibaba Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $186.90.

Alibaba Group Stock Down 2.4%

The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21. The business’s fifty day moving average price is $112.92 and its two-hundred day moving average price is $130.34. The firm has a market cap of $292.92 billion, a P/E ratio of 20.07, a P/E/G ratio of 2.36 and a beta of 0.49.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings data on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The firm had revenue of $35.30 billion during the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. As a group, equities research analysts anticipate that Alibaba Group Holding Limited will post 6.27 EPS for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On Alibaba Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. S&G Foundation bought a new position in shares of Alibaba Group in the second quarter valued at approximately $77,000. Serenity Capital Management PTE. LTD. acquired a new position in Alibaba Group in the 2nd quarter valued at $6,718,600,000. Hudson Value Partners LLC grew its stake in Alibaba Group by 24.3% in the 2nd quarter. Hudson Value Partners LLC now owns 29,344 shares of the specialty retailer’s stock valued at $2,816,000 after buying an additional 5,731 shares during the last quarter. KMG Fiduciary Partners LLC raised its holdings in Alibaba Group by 6.8% in the 2nd quarter. KMG Fiduciary Partners LLC now owns 13,107 shares of the specialty retailer’s stock worth $1,258,000 after acquiring an additional 831 shares during the period. Finally, Steadtrust LLC raised its holdings in Alibaba Group by 13.2% in the 2nd quarter. Steadtrust LLC now owns 5,832 shares of the specialty retailer’s stock worth $560,000 after acquiring an additional 680 shares during the period. Institutional investors and hedge funds own 13.47% of the company’s stock.

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.