Alibaba Group (NYSE:BABA) Issues Quarterly Earnings Results

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

Alibaba Group Price Performance

BABA stock opened at $129.04 on Thursday. The stock 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. Alibaba Group has a 12 month low of $91.99 and a 12 month high of $192.67. The company has a 50-day moving average price of $113.43 and a 200 day moving average price of $128.65. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.21.

Analyst Ratings Changes

A number of research analysts recently weighed in on BABA shares. Morgan Stanley raised their target price on shares of Alibaba Group from $180.00 to $190.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Susquehanna upped their price target on shares of Alibaba Group from $170.00 to $185.00 and gave the company a “positive” rating in a research note on Friday, May 15th. HSBC set a $170.00 price objective on shares of Alibaba Group in a research report on Thursday, July 9th. BNP Paribas Exane assumed coverage on shares of Alibaba Group in a report on Wednesday, April 29th. They issued an “outperform” rating and a $209.00 target price on the stock. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Alibaba Group in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $186.90.

Insiders Place Their Bets

In other Alibaba Group news, CEO Fan (Fj) 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 value of $164,305.90. Following the completion of the sale, 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 4,898 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $12.09, for a total value of $59,216.82. Following the transaction, the insider directly owned 5,559,511 shares in the company, valued at approximately $67,214,487.99. This represents a 0.09% decrease in their position. 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. Insiders have sold 920,303 shares of company stock valued at $70,796,370 over the last quarter. Corporate insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Alibaba Group

Hedge funds and other institutional investors have recently modified their holdings of the business. Compound Planning Inc. grew its stake in Alibaba Group by 8.9% in the fourth quarter. Compound Planning Inc. now owns 29,820 shares of the specialty retailer’s stock valued at $4,371,000 after purchasing an additional 2,431 shares during the last quarter. Axxcess Wealth Management LLC grew its position in shares of Alibaba Group by 13.0% in the 4th quarter. Axxcess Wealth Management LLC now owns 10,276 shares of the specialty retailer’s stock worth $1,506,000 after buying an additional 1,185 shares during the last quarter. Corient Private Wealth LLC grew its position in shares of Alibaba Group by 1.0% in the 4th quarter. Corient Private Wealth LLC now owns 53,397 shares of the specialty retailer’s stock worth $7,795,000 after buying an additional 513 shares during the last quarter. Ameriflex Group Inc. raised its stake in shares of Alibaba Group by 431.5% during the 4th quarter. Ameriflex Group Inc. now owns 760 shares of the specialty retailer’s stock worth $111,000 after acquiring an additional 617 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its position in Alibaba Group by 71.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 31,630 shares of the specialty retailer’s stock valued at $4,636,000 after acquiring an additional 13,213 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors.

More Alibaba Group News

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.

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.