Alibaba Group (NYSE:BABA) Stock Price Down 2.8% on Analyst Downgrade

Shares of Alibaba Group Holding Limited (NYSE:BABA) fell 2.8% during trading on Wednesday after Freedom Capital downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $146.61 and last traded at $146.7340. 12,510,029 shares traded hands during mid-day trading, a decline of 10% from the average session volume of 13,971,088 shares. The stock had previously closed at $150.90.

Several other equities analysts have also recently commented on the stock. Weiss Ratings restated a “buy (b-)” rating on shares of Alibaba Group in a research report on Wednesday, October 8th. Arete Research set a $172.00 price objective on shares of Alibaba Group in a research report on Tuesday, December 9th. Barclays upped their target price on Alibaba Group from $190.00 to $195.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 26th. Erste Group Bank upgraded Alibaba Group from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Finally, Mizuho set a $195.00 price objective on Alibaba Group in a research report on Wednesday, October 22nd. Seventeen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Alibaba Group currently has a consensus rating of “Moderate Buy” and an average target price of $192.11.

Alibaba Group News Summary

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

• Positive Sentiment: New AI product momentum — Alibaba’s Amap unit rolled out AI-powered 3D virtual tours and is advancing “world model” capabilities, signaling product differentiation in location/consumer services that could drive engagement and monetization. SCMP: Amap 3D virtual tours MSN: Amap world models
• Positive Sentiment: AI/cloud growth thesis remains intact — analyst write-ups highlight accelerating AI-driven cloud revenue (triple-digit AI-related growth in parts of cloud) and long-term upside from Qwen and other AI investments, supporting a constructive medium-term revenue mix shift. Seeking Alpha: Alibaba Is Building An AI Arsenal
• Neutral Sentiment: Sector precedent for value unlocking — Baidu’s recent confidential spin-off filing for its chip unit is cited as a catalyst for Chinese tech re-ratings and underscores a broader trend (spins, separate listings) that could inform investor expectations for conglomerate value realization across peers including Alibaba. MarketBeat: Baidu spin-off
• Negative Sentiment: Analyst downgrade and caution — Freedom Capital downgraded BABA from “strong-buy” to “hold,” and other outlets flag rising analyst caution, which dampens near-term buy-side enthusiasm. Zacks: downgrade AktienCheck: regulatory headwinds
• Negative Sentiment: Legal/ regulatory risk — A Pomerantz investor investigation was announced, adding litigation risk and uncertainty that can pressure the stock until resolved. GlobeNewswire: Pomerantz investigation
• Negative Sentiment: Short-term underperformance and price pressure — recent coverage notes BABA underperformed peers and the stock has seen a pullback after a strong run (social chatter and Zacks noted recent slides), contributing to today’s downward move. MarketWatch: underperformance Zacks: stock slides

Hedge Funds Weigh In On Alibaba Group

A number of institutional investors and hedge funds have recently bought and sold shares of BABA. Kingstone Capital Partners Texas LLC boosted its stake in shares of Alibaba Group by 1,349,768.3% during the second quarter. Kingstone Capital Partners Texas LLC now owns 49,013,718 shares of the specialty retailer’s stock valued at $5,558,646,000 after purchasing an additional 49,010,087 shares in the last quarter. Primecap Management Co. CA boosted its position in Alibaba Group by 0.7% during the 2nd quarter. Primecap Management Co. CA now owns 20,764,276 shares of the specialty retailer’s stock worth $2,354,877,000 after buying an additional 140,579 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Alibaba Group by 85.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,557,495 shares of the specialty retailer’s stock worth $1,131,558,000 after buying an additional 3,947,460 shares during the period. Capital World Investors grew its holdings in Alibaba Group by 1,074.9% during the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock worth $1,079,229,000 after acquiring an additional 5,524,354 shares during the last quarter. Finally, Fisher Asset Management LLC increased its position in Alibaba Group by 0.5% in the 3rd quarter. Fisher Asset Management LLC now owns 5,293,597 shares of the specialty retailer’s stock valued at $946,125,000 after acquiring an additional 26,156 shares during the period. Institutional investors and hedge funds own 13.47% of the company’s stock.

Alibaba Group Price Performance

The stock has a market cap of $350.12 billion, a P/E ratio of 20.27, a P/E/G ratio of 2.42 and a beta of 0.37. The company’s 50 day moving average price is $157.24 and its 200-day moving average price is $145.47. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.23.

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.