Alibaba Group (NYSE:BABA) Trading 2.4% Higher – Still a Buy?

Shares of Alibaba Group Holding Limited (NYSE:BABA) were up 2.4% during mid-day trading on Monday . The company traded as high as $116.20 and last traded at $115.97. 8,939,507 shares changed hands during trading, a decline of 25% from the average session volume of 11,863,812 shares. The stock had previously closed at $113.24.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Qwen visibility boosted AI sentiment: Alibaba’s Qwen large-language-model platform reportedly appeared in a U.S. government-related public-record search deployment, highlighting its potential reach and supporting optimism about the company’s global AI ambitions. Alibaba also appointed a new leader for the Qwen team, a move that could sharpen execution. Alibaba Jumps 4.3% With Qwen’s Brief U.S. Government Appearance Alibaba Appoints New Head of Qwen LLM Team
• Positive Sentiment: Cloud and AI growth remains a major catalyst: Alibaba’s cloud and AI segment reportedly grew revenue 45% year over year in the latest quarter, while AI-product revenue reached an annualized run rate of approximately $7.3 billion. Investors continue to view AI demand as a potential growth engine despite broader earnings pressure. Microsoft vs Alibaba: Which Cloud AI Stock Is Better Positioned?
• Neutral Sentiment: AI expansion also carries execution and geopolitical risks: Coverage of Qwen’s U.S. exposure pointed to potential procurement restrictions and geopolitical scrutiny. Separately, a report discussed Alibaba’s work with Mastercard on AI-agent payments, which could create new commercial opportunities but remains an emerging, unproven market. AI Agent Payments—The Trust Foundation Built by Mastercard and Alibaba
• Negative Sentiment: Multiple securities-fraud law firms publicized the same class action: Several firms urged investors who purchased BABA securities between June 26, 2025, and June 24, 2026, to seek lead-plaintiff status before the October 5, 2026 deadline. The lawsuits allege violations of U.S. securities laws and could increase legal costs, reputational risk, and uncertainty, although the announcements themselves do not establish liability. Robbins LLP Class Action Deadline Notice
• Negative Sentiment: Cash-flow concerns temper the AI narrative: Alibaba reportedly used RMB44.73 billion in free cash flow last quarter, raising questions about the cost of funding AI infrastructure and other investments even as cloud growth accelerates. Alibaba Free Cash Flow Analysis

Analysts Set New Price Targets

BABA has been the topic of a number of analyst reports. Susquehanna lifted their price target on Alibaba Group from $185.00 to $190.00 and gave the company a “positive” rating in a research note on Friday, August 28th. Weiss Ratings cut Alibaba Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday. Nomura reduced their target price on Alibaba Group from $207.00 to $178.00 and set a “buy” rating for the company in a report on Thursday, June 25th. Barclays upped their price target on shares of Alibaba Group from $195.00 to $200.00 and gave the stock an “overweight” rating in a research note on Friday, August 21st. Finally, Sanford C. Bernstein reiterated an “outperform” rating and issued a $165.00 price target on shares of Alibaba Group in a report on Monday, September 7th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Alibaba Group presently has an average rating of “Moderate Buy” and a consensus price target of $187.45.

Alibaba Group Trading Up 2.4%

The firm has a market cap of $288.26 billion, a price-to-earnings ratio of 28.08, a PEG ratio of 1.49 and a beta of 0.51. The business has a fifty day moving average of $117.99 and a two-hundred day moving average of $121.95. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.36 and a current ratio of 1.36.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings data on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.68). The firm had revenue of $39.64 billion for the quarter, compared to analyst estimates of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%.The business’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $14.75 earnings per share. As a group, equities analysts expect that Alibaba Group Holding Limited will post 5.91 earnings per share for the current fiscal year.

Insider Buying and Selling at Alibaba Group

In related news, President J. Evans sold 720,000 shares of the stock in a transaction dated 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 sale, the president directly owned 28,000 shares of the company’s stock, valued at approximately $2,658,600. This represents a 96.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Fan Jiang sold 13,579 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $12.10, for a total transaction of $164,305.90. Following the transaction, the chief executive officer owned 556,617 shares of the company’s stock, valued at $6,735,065.70. This trade represents a 2.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 920,303 shares of company stock worth $70,796,370. Insiders own 12.50% of the company’s stock.

Institutional Trading of Alibaba Group

Several large investors have recently modified their holdings of BABA. Bleakley Financial Group LLC lifted its stake in shares of Alibaba Group by 0.4% during the fourth quarter. Bleakley Financial Group LLC now owns 16,420 shares of the specialty retailer’s stock valued at $2,407,000 after buying an additional 67 shares during the period. Cary Street Partners Investment Advisory LLC grew its stake in Alibaba Group by 4.1% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 1,915 shares of the specialty retailer’s stock worth $281,000 after acquiring an additional 76 shares during the period. Accredited Investors Inc. grew its stake in Alibaba Group by 2.9% in the 1st quarter. Accredited Investors Inc. now owns 2,858 shares of the specialty retailer’s stock worth $359,000 after acquiring an additional 80 shares during the period. Calton & Associates Inc. raised its holdings in Alibaba Group by 6.1% in the 4th quarter. Calton & Associates Inc. now owns 1,630 shares of the specialty retailer’s stock valued at $239,000 after acquiring an additional 93 shares during the last quarter. Finally, Mainstream Capital Management LLC raised its holdings in Alibaba Group by 1.1% in the 1st quarter. Mainstream Capital Management LLC now owns 8,597 shares of the specialty retailer’s stock valued at $1,079,000 after acquiring an additional 93 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors and hedge funds.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a global technology and commerce company founded in 1999 by Jack Ma and a group of co-founders. Headquartered in Hangzhou, China, the company operates a broad ecosystem of businesses serving consumers, merchants, brands and enterprises.

Its core businesses include online and mobile commerce platforms such as Taobao and Tmall in China, as well as international marketplaces including AliExpress and Lazada. Alibaba also provides wholesale commerce, cross-border retail, logistics through Cainiao, local consumer services, digital media and entertainment, and other consumer-focused technology services.

Alibaba Cloud provides cloud computing, data storage, artificial intelligence and related technology solutions to businesses and organizations.