Alibaba Group (NYSE:BABA) Announces Earnings Results, Misses Estimates By $0.49 EPS

Alibaba Group (NYSE:BABA) issued its quarterly earnings data on Thursday. The specialty retailer reported $1.01 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.49), Zacks reports. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.

Alibaba Group Price Performance

Shares of BABA opened at $129.04 on Thursday. The firm has a market cap of $309.32 billion, a PE ratio of 21.19, a P/E/G ratio of 2.37 and a beta of 0.49. 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 firm has a fifty day simple moving average of $113.43 and a two-hundred day simple moving average of $128.65. Alibaba Group has a 1-year low of $91.99 and a 1-year high of $192.67.

Alibaba Group News Summary

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

• Positive Sentiment: Cloud growth remains a major catalyst: Alibaba said cloud revenue increased 45% year over year, driven by demand for AI-related services. Overall quarterly revenue rose 9%, while the “618” shopping festival supported the core e-commerce business. Alibaba cloud revenue rises 45% even as AI spending weighs on profit
• Positive Sentiment: AI strategy is attracting investor interest: Alibaba continues to expand its Qwen AI ecosystem and recently introduced new AI tools for consumers and merchants. The company’s decision to sell Lingxi Games for reportedly more than $2 billion also signals a sharper focus on AI and cloud infrastructure. Alibaba cashes out of gaming to double down on AI
• Positive Sentiment: Analyst targets imply potential upside: Recent targets include $185 from Susquehanna, $195 from Mizuho and Barclays, and $205 from JPMorgan. The six-month median target is $195, suggesting analysts remain constructive on Alibaba’s longer-term AI and cloud opportunity.
• Neutral Sentiment: Institutional positioning is mixed: 549 institutions increased their holdings in the latest quarter, while 811 reduced positions. JPMorgan and Barclays were notable buyers, whereas FMR, SIH Partners and HHLR Advisors cut positions.
• Negative Sentiment: Fiscal Q1 2027 results missed expectations: Alibaba reported earnings of $8.47 per share versus the $10.62 consensus estimate. Revenue of approximately $266.45 billion also trailed estimates of roughly $274.32 billion. Alibaba Group releases Q1 2027 earnings
• Negative Sentiment: Profitability is under pressure: Aggressive AI infrastructure spending, capital expenditures and quick-commerce investments are weighing on earnings despite rapid cloud growth. Investors will likely watch whether AI revenue can eventually offset these costs.
• Negative Sentiment: Legal and governance risks remain: Multiple law firms have publicized securities-fraud lawsuits involving allegations related to AI disclosures and other company statements. Insider activity is also a negative signal, with nine reported open-market sales and no purchases over the past six months.

Insider Buying and Selling at Alibaba Group

In other Alibaba Group news, CEO Fan (Fj) Jiang sold 13,579 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $12.10, for a total transaction of $164,305.90. Following the completion of the sale, the chief executive officer directly owned 556,617 shares of the company’s stock, valued at approximately $6,735,065.70. This represents a 2.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Siying Yu sold 6,772 shares of the firm’s stock in a transaction on Thursday, June 25th. The stock was 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 directly owned 607,234 shares in the company, valued at approximately $7,347,531.40. This represents a 1.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 920,303 shares of company stock worth $70,796,370. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alibaba Group

Several institutional investors and hedge funds have recently modified their holdings of BABA. Brighton Jones LLC lifted its holdings in shares of Alibaba Group by 40.4% in the fourth quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer’s stock worth $289,000 after buying an additional 981 shares in the last quarter. AQR Capital Management LLC purchased a new position in Alibaba Group during the first quarter valued at $254,000. Bank of Nova Scotia increased its holdings in Alibaba Group by 313.0% in the 2nd quarter. Bank of Nova Scotia now owns 21,778 shares of the specialty retailer’s stock valued at $2,470,000 after acquiring an additional 16,505 shares during the last quarter. Daiwa Securities Group Inc. bought a new stake in Alibaba Group in the 2nd quarter valued at $1,613,000. Finally, Ieq Capital LLC lifted its stake in Alibaba Group by 51.9% in the 2nd quarter. Ieq Capital LLC now owns 70,060 shares of the specialty retailer’s stock worth $7,946,000 after purchasing an additional 23,925 shares in the last quarter. Institutional investors own 13.47% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have recently commented on BABA. Susquehanna raised their target price on Alibaba Group from $170.00 to $185.00 and gave the company a “positive” rating in a research note on Friday, May 15th. BNP Paribas Exane assumed coverage on Alibaba Group in a research report on Wednesday, April 29th. They set an “outperform” rating and a $209.00 price objective for the company. Freedom Capital upgraded shares of Alibaba Group from a “hold” rating to a “strong-buy” rating in a report on Friday, April 24th. Nomura decreased their price target on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating for the company in a research note on Thursday, June 25th. Finally, Wall Street Zen raised shares of Alibaba Group from a “sell” rating to a “hold” rating in a research report on Saturday, May 23rd. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, Alibaba Group has a consensus rating of “Moderate Buy” and an average price target of $186.90.

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.