Alibaba Group (NYSE:BABA) Shares Down 2.6% – Time to Sell?

Alibaba Group Holding Limited (NYSE:BABA) dropped 2.6% on Friday . The stock traded as low as $169.47 and last traded at $169.70. Approximately 10,746,530 shares traded hands during trading, a decline of 30% from the average daily volume of 15,452,530 shares. The stock had previously closed at $174.25.

Key Headlines Impacting Alibaba Group

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

• Positive Sentiment: Alibaba’s chip unit T-Head unveiled the self-developed AI chip Zhenwu 810E, which the company says completes its AI “golden triangle” (chip, cloud, models). This strengthens Alibaba’s cloud/AI moat and reduces reliance on foreign suppliers. Alibaba’s T-Head unveils self-developed AI chip Zhenwu 810E
• Positive Sentiment: Alibaba struck a major logistics deal (~$2 billion) to deploy Robovans and is consolidating logistics and autonomous-driving units (Zelos), aiming to cut delivery costs and scale automated fulfillment — a long-term cost-saver that supports margins if execution succeeds. Alibaba Reshapes Logistics With $2 Billion Robovan Deal
• Neutral Sentiment: Alibaba and ByteDance plan new AI model launches for Lunar New Year — shows intense domestic AI competition but also validates large addressable demand for Chinese generative-AI services. Competitive dynamics could spur adoption but also require continued spending. ByteDance and Alibaba to release new AI models for Lunar New Year – Information
• Neutral Sentiment: Media coverage of analyst ratings remains mixed; some Wall Street commentary is bullish on BABA’s long-term AI/cloud story but investors should treat upgrades/downgrades as sentiment drivers rather than fundamentals. Is It Worth Investing in Alibaba (BABA) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Near-term margin pressure: Q2 FY26 results and analyst write-ups highlight modest revenue growth but steep margin erosion as competition and heavy AI/logistics spending weigh on profits — a key reason for today’s downward price move. BABA’s Margins Suffer From Stiff Competition: Time to Sell the Stock?

Analysts Set New Price Targets

Several research analysts have commented on the stock. Loop Capital set a $140.00 price objective on shares of Alibaba Group in a research note on Tuesday, January 6th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Alibaba Group in a research note on Wednesday, January 21st. Mizuho set a $195.00 price target on shares of Alibaba Group in a report on Wednesday, October 22nd. Barclays raised their price objective on shares of Alibaba Group from $190.00 to $195.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 26th. Finally, JPMorgan Chase & Co. dropped their target price on Alibaba Group from $240.00 to $230.00 and set an “overweight” rating for the company in a research report on Wednesday, November 26th. Eighteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $195.17.

Alibaba Group Stock Down 2.6%

The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.23. The stock has a market cap of $405.14 billion, a P/E ratio of 23.44, a P/E/G ratio of 3.80 and a beta of 0.37. The company’s 50 day moving average price is $158.58 and its two-hundred day moving average price is $152.27.

Hedge Funds Weigh In On Alibaba Group

A number of hedge funds and other institutional investors have recently made changes to their positions in BABA. Primecap Management Co. CA lifted its stake in Alibaba Group by 0.7% in the second quarter. Primecap Management Co. CA now owns 20,764,276 shares of the specialty retailer’s stock worth $2,354,877,000 after acquiring an additional 140,579 shares during the period. Capital World Investors raised its holdings in shares of Alibaba Group by 1,074.9% in the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock valued at $1,079,229,000 after purchasing an additional 5,524,354 shares in the last quarter. Fisher Asset Management LLC lifted its position in shares of 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 worth $946,125,000 after purchasing an additional 26,156 shares during the period. Norges Bank bought a new position in shares of Alibaba Group during the second quarter valued at approximately $527,243,000. Finally, American Century Companies Inc. increased its holdings in Alibaba Group by 17.7% during the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock valued at $533,964,000 after buying an additional 448,484 shares during the period. 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.