Alibaba Group (NYSE:BABA) Shares Up 1.8% – Should You Buy?

Alibaba Group Holding Limited (NYSE:BABA)’s share price shot up 1.8% during mid-day trading on Wednesday . The company traded as high as $177.87 and last traded at $175.77. 8,893,520 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 15,852,961 shares. The stock had previously closed at $172.72.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Alibaba’s chip unit T-Head unveiled the self-developed AI chip Zhenwu 810E, which the company says completes its AI “golden triangle” (chip, cloud, models). This strengthens Alibaba’s cloud/AI moat and reduces reliance on foreign suppliers. Alibaba’s T-Head unveils self-developed AI chip Zhenwu 810E
• Positive Sentiment: Alibaba struck a major logistics deal (~$2 billion) to deploy Robovans and is consolidating logistics and autonomous-driving units (Zelos), aiming to cut delivery costs and scale automated fulfillment — a long-term cost-saver that supports margins if execution succeeds. Alibaba Reshapes Logistics With $2 Billion Robovan Deal
• Neutral Sentiment: Alibaba and ByteDance plan new AI model launches for Lunar New Year — shows intense domestic AI competition but also validates large addressable demand for Chinese generative-AI services. Competitive dynamics could spur adoption but also require continued spending. ByteDance and Alibaba to release new AI models for Lunar New Year – Information
• Neutral Sentiment: Media coverage of analyst ratings remains mixed; some Wall Street commentary is bullish on BABA’s long-term AI/cloud story but investors should treat upgrades/downgrades as sentiment drivers rather than fundamentals. Is It Worth Investing in Alibaba (BABA) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Near-term margin pressure: Q2 FY26 results and analyst write-ups highlight modest revenue growth but steep margin erosion as competition and heavy AI/logistics spending weigh on profits — a key reason for today’s downward price move. BABA’s Margins Suffer From Stiff Competition: Time to Sell the Stock?

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on BABA. Weiss Ratings reiterated a “buy (b-)” rating on shares of Alibaba Group in a research report on Wednesday, January 21st. Mizuho set a $195.00 price objective on Alibaba Group in a report on Wednesday, October 22nd. Zacks Research lowered Alibaba Group from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 14th. Barclays raised their target price on Alibaba Group from $190.00 to $195.00 and gave the company an “overweight” rating in a research report on Wednesday, November 26th. Finally, Rosenblatt Securities set a $195.00 price target on Alibaba Group in a research report on Wednesday, November 26th. Eighteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $195.17.

Alibaba Group Stock Performance

The stock has a market cap of $405.14 billion, a price-to-earnings ratio of 23.44, a PEG ratio of 3.80 and a beta of 0.37. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a fifty day moving average of $158.58 and a 200 day moving average of $152.02.

Institutional Investors Weigh In On Alibaba Group

A number of hedge funds have recently modified their holdings of BABA. Brighton Jones LLC increased its holdings 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 buying an additional 981 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Alibaba Group in the first quarter valued at $254,000. Janney Montgomery Scott LLC grew its holdings in shares of Alibaba Group by 35.2% during the 2nd quarter. Janney Montgomery Scott LLC now owns 69,245 shares of the specialty retailer’s stock worth $7,853,000 after purchasing an additional 18,012 shares during the period. Ninety One UK Ltd purchased a new stake in Alibaba Group in the 2nd quarter valued at about $15,318,000. Finally, BSW Wealth Partners boosted its stake in Alibaba Group by 9.1% during the second quarter. BSW Wealth Partners now owns 1,785 shares of the specialty retailer’s stock worth $202,000 after buying an additional 149 shares during the period. Hedge funds and other institutional investors own 13.47% of the company’s stock.

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.