Alibaba Group (NYSE:BABA) Trading Down 3.5% After Analyst Downgrade

Alibaba Group Holding Limited (NYSE:BABA) shares dropped 3.5% during trading on Thursday 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 $124.59 and last traded at $125.3470. Approximately 9,169,600 shares changed hands during trading, a decline of 27% from the average daily volume of 12,584,894 shares. The stock had previously closed at $129.87.

Other analysts also recently issued reports about the company. Freedom Capital downgraded Alibaba Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Citigroup boosted their target price on Alibaba Group from $218.00 to $225.00 and gave the stock a “buy” rating in a research note on Wednesday, November 26th. Weiss Ratings cut shares of Alibaba Group from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, February 27th. Jefferies Financial Group reduced their price target on shares of Alibaba Group from $225.00 to $212.00 and set a “buy” rating on the stock in a research note on Thursday, March 19th. Finally, Barclays decreased their price target on shares of Alibaba Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a report on Friday, March 20th. Sixteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $187.89.

More Alibaba Group News

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

• Positive Sentiment: Company progress on proprietary AI hardware could materially strengthen cloud margins and reduce geopolitical supply risk — a long-term positive for valuations. Why Alibaba’s New 5nm Chip Could Be a Game Changer
• Positive Sentiment: Analyst moves upward from distress ratings: Zacks and Argus have recently upgraded Alibaba toward “hold”, which can reduce selling pressure from income-focused or mandated-sell funds. Zacks Research / upgrades
• Neutral Sentiment: Sector context — ongoing food-delivery price wars (Meituan/peers) continue to affect sentiment across Chinese tech, which can spill into Alibaba even if impacts are indirect. Meituan Posts Quarterly Loss as Price War Continues
• Neutral Sentiment: Macro / headlines coverage: a mix of “stocks to watch” and broader pieces (Barron’s, Yahoo) keeps Alibaba in investor screens but doesn’t decisively swing sentiment. Barron’s on food-delivery dynamics
• Negative Sentiment: Analyst target cut: Susquehanna lowered its price target from $190 to $170 (even while keeping a “positive” stance), which can remove some upside expectations and weigh on near-term sentiment. Susquehanna price target cut
• Negative Sentiment: Earnings/earnings commentary: coverage highlighting a ~67% decline in non‑GAAP profit tied to large AI/cloud spending is prompting concern about near-term margin erosion and cash deployment. Alibaba Price Target Slashed to $170 as Heavy AI Spending Drags Profits Down 67%
• Negative Sentiment: Investor rotation risk: opinion pieces arguing to sell Alibaba in favor of JD.com highlight capital reallocation trends among China-tech investors — increased rotation can pressure BABA shares. Why I Sold Alibaba To Buy JD.com

Institutional Trading of Alibaba Group

Several hedge funds and other institutional investors have recently made changes to their positions in BABA. Brighton Jones LLC grew its holdings in 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 acquiring an additional 981 shares during the last quarter. AQR Capital Management LLC acquired a new position in shares of Alibaba Group during the first quarter worth $254,000. Legal & General Group Plc lifted its holdings in shares of Alibaba Group by 16.7% during the second quarter. Legal & General Group Plc now owns 584,901 shares of the specialty retailer’s stock worth $66,334,000 after purchasing an additional 83,733 shares during the period. AlphaCore Capital LLC bought a new stake in shares of Alibaba Group in the second quarter worth $162,000. Finally, Coldstream Capital Management Inc. grew its stake in shares of Alibaba Group by 157.6% in the second quarter. Coldstream Capital Management Inc. now owns 6,302 shares of the specialty retailer’s stock worth $721,000 after purchasing an additional 3,856 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors.

Alibaba Group Stock Down 3.5%

The firm has a market capitalization of $299.25 billion, a price-to-earnings ratio of 23.65, a P/E/G ratio of 3.08 and a beta of 0.43. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.33 and a quick ratio of 1.33. The stock has a fifty day moving average of $151.56 and a two-hundred day moving average of $158.31.

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.