Alibaba Group (NYSE:BABA) Shares Down 2.9% – Should You Sell?

Alibaba Group Holding Limited (NYSE:BABA)’s share price dropped 2.9% during trading on Tuesday . The stock traded as low as $160.61 and last traded at $163.57. Approximately 9,974,414 shares traded hands during trading, a decline of 33% from the average daily volume of 14,802,327 shares. The stock had previously closed at $168.39.

More Alibaba Group News

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

• Positive Sentiment: Alibaba committed roughly 3 billion yuan (~$431M) to promote its Qwen AI app over the Lunar New Year, a scale campaign aimed at rapid user growth that could expand Qwen’s ecosystem and monetization opportunities. Reuters: Alibaba to spend $431 million for Lunar New Year AI push
• Positive Sentiment: Caixin’s analysis highlights Alibaba’s new processor and argues that application integration (not just raw silicon) will determine AI chip winners — a nod to Alibaba’s cloud + app strategy that supports long-term differentiation in AI infrastructure. Caixin: Analysis on Alibaba’s new processor
• Neutral Sentiment: Reports note Robovan (an Alibaba unit) is set to invest in Zelos Technology, signaling broader bets in robotics/EV-related technology but with limited immediate financial detail; the strategic fit and near-term impact remain unclear. MSN/WSJ: Robovan to invest in Zelos
• Neutral Sentiment: Coverage (Yahoo/other outlets) emphasizes that Alibaba’s expanding AI push spotlights both its chip ambitions and Qwen’s user-growth strategy — important for long-term positioning but requiring execution across product, cloud, and go-to-market. Yahoo Finance: AI push and chip/Qwen focus
• Negative Sentiment: The 3 billion yuan marketing/incentive spend intensifies the consumer AI “subsidy war” in China and could depress near-term margins and free cash flow if user retention/monetization falls short of expectations. PYMNTS: Alibaba raises stakes in chatbot war
• Negative Sentiment: Street commentary is mixed — analysts are watching user metrics, monetization of Qwen, and the capital intensity of chip and marketing investments; that uncertainty can weigh on sentiment and contribute to the stock’s pullback. MSN: Where is BABA headed according to the Street?

Analyst Ratings Changes

Several research firms recently weighed in on BABA. Zacks Research cut shares of Alibaba Group from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 14th. Rosenblatt Securities set a $195.00 price objective on shares of Alibaba Group in a report on Wednesday, November 26th. Wall Street Zen lowered shares of Alibaba Group from a “hold” rating to a “sell” rating in a research report on Friday, November 28th. Macquarie reaffirmed an “outperform” rating on shares of Alibaba Group in a research note on Tuesday, November 25th. Finally, Freedom Capital lowered shares of Alibaba Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. Eighteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $195.17.

Alibaba Group Trading Down 2.9%

The business’s 50-day moving average price is $158.73 and its two-hundred day moving average price is $152.88. The company has a market capitalization of $390.51 billion, a price-to-earnings ratio of 22.59, a P/E/G ratio of 3.70 and a beta of 0.39. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.46 and a quick ratio of 1.46.

Institutional Investors Weigh In On Alibaba Group

Institutional investors have recently made changes to their positions in the stock. Rosenberg Matthew Hamilton acquired a new position in shares of Alibaba Group in the 2nd quarter valued at about $26,000. Ameriflex Group Inc. raised its holdings in Alibaba Group by 101.4% during the third quarter. Ameriflex Group Inc. now owns 143 shares of the specialty retailer’s stock worth $26,000 after buying an additional 72 shares during the last quarter. Mather Group LLC. bought a new position in Alibaba Group in the 3rd quarter valued at about $30,000. Foster Dykema Cabot & Partners LLC purchased a new position in shares of Alibaba Group during the third quarter valued at approximately $30,000. Finally, NBT Bank N A NY lifted its position in shares of Alibaba Group by 231.5% during the third quarter. NBT Bank N A NY now owns 179 shares of the specialty retailer’s stock valued at $32,000 after purchasing an additional 125 shares in the last quarter. Institutional investors own 13.47% of the company’s stock.

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.