Alibaba Group (NYSE:BABA) Shares Down 2.2% – Time to Sell?

Shares of Alibaba Group Holding Limited (NYSE:BABA) were down 2.2% during trading on Thursday . The company traded as low as $128.09 and last traded at $131.4490. Approximately 12,534,282 shares were traded during trading, an increase of 5% from the average daily volume of 11,961,619 shares. The stock had previously closed at $134.47.

Key Alibaba Group News

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

• Positive Sentiment: Alibaba continued to highlight rapid AI and cloud momentum, with new product announcements including its Zhenwu M890 AI chip and next-generation Qwen model, reinforcing the case that its cloud franchise could benefit from faster commercialization of AI. Alibaba unveils new AI chip in push for domestic alternatives
• Positive Sentiment: Several Wall Street firms remain constructive, with recent buy or overweight ratings and price targets well above the current trading range, suggesting analysts still see upside if AI monetization improves. Benchmark Reaffirms Buy Rating on Alibaba (BABA) Following AI Cloud Expansion
• Neutral Sentiment: The company filed its 2026 Form 20-F and continues to present itself as an increasingly AI-focused platform, but this filing does not appear to be a major near-term catalyst by itself. Alibaba Files 2026 Form 20-F, Highlights WVR Structure and Board Line-up
• Negative Sentiment: Investors are focused on Alibaba’s weaker adjusted profitability and the company’s plan to spend beyond its already large AI/cloud investment program, raising concerns that margins and free cash flow could stay pressured near term. Alibaba slides as investors digest profit squeeze and stepped-up AI spending plans

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the company. Mizuho boosted their target price on Alibaba Group from $190.00 to $195.00 and gave the stock an “outperform” rating in a report on Thursday, May 14th. Nomura upped their price target on shares of Alibaba Group from $200.00 to $207.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Susquehanna upped their price target on shares of Alibaba Group from $170.00 to $185.00 and gave the stock a “positive” rating in a research note on Friday, May 15th. Zacks Research downgraded shares of Alibaba Group from a “hold” rating to a “strong sell” rating in a research note on Wednesday, April 22nd. Finally, Morgan Stanley upped their target price on shares of Alibaba Group from $180.00 to $190.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $188.76.

Alibaba Group Stock Performance

The company has a quick ratio of 1.33, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $315.35 billion, a P/E ratio of 21.58, a P/E/G ratio of 2.35 and a beta of 0.50. The business has a fifty day moving average price of $131.83 and a 200-day moving average price of $148.27.

Alibaba Group (NYSE:BABA) last posted its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) for the quarter. The business had revenue of $35.30 billion for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. On average, sell-side analysts expect that Alibaba Group Holding Limited will post 6.67 EPS for the current year.

Alibaba Group Announces Dividend

The business also recently disclosed an annual dividend, which will be paid on Monday, July 13th. Investors of record on Thursday, June 11th will be given a dividend of $1.05 per share. The ex-dividend date is Thursday, June 11th. This represents a yield of 72.0%. Alibaba Group’s dividend payout ratio is 15.60%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Capital World Investors lifted its holdings 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. raised its position in 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 period. Fisher Asset Management LLC boosted its stake in shares of Alibaba Group by 0.8% during the 4th 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 bought a new stake in shares of Alibaba Group during the 4th quarter valued at $594,477,000. Finally, American Century Companies Inc. increased its stake in shares of 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 worth $533,964,000 after purchasing an additional 448,484 shares in the last quarter. Institutional investors 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.