Alibaba Group (NYSE:BABA) Stock Price Down 2.2% Following Analyst Downgrade

Alibaba Group Holding Limited (NYSE:BABA)’s stock price traded down 2.2% on Friday after Susquehanna lowered their price target on the stock from $190.00 to $170.00. Susquehanna currently has a positive rating on the stock. Alibaba Group traded as low as $122.23 and last traded at $122.7120. 8,050,392 shares were traded during mid-day trading, a decline of 36% from the average session volume of 12,508,782 shares. The stock had previously closed at $125.41.

Several other equities research analysts have also commented on the stock. Barclays lowered their price target on shares of Alibaba Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a report on Friday, March 20th. Jefferies Financial Group decreased their price objective on Alibaba Group from $225.00 to $212.00 and set a “buy” rating for the company in a report on Thursday, March 19th. Sanford C. Bernstein lowered their target price on Alibaba Group from $200.00 to $190.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 26th. Erste Group Bank lowered Alibaba Group from a “buy” rating to a “hold” rating in a report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. reduced their price target on Alibaba Group from $215.00 to $205.00 and set an “overweight” rating for the company in a research report on Friday, March 20th. Sixteen research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Alibaba Group has an average rating of “Moderate Buy” and a consensus target price of $187.89.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Sources say Alibaba plans to place orders for Huawei’s new AI chip after successful testing, which could lower costs, deepen Alibaba’s domestic AI stack and reduce dependence on foreign chips. Exclusive: Huawei’s new AI chip find favour with ByteDance, Alibaba which plan to place orders, sources say
• Positive Sentiment: Analyst support: Argus recently upgraded BABA (leading to a short-term uptick), reflecting some analyst conviction in the stock despite near-term headwinds. Alibaba Group (NYSE:BABA) Upgraded at Argus
• Positive Sentiment: Zacks moved BABA from “strong sell” to “hold,” reducing immediate sell-side pressure and signaling improved sentiment from that broker. Zacks Research upgrade
• Positive Sentiment: Product/AI progress: Alibaba is rolling out “Accio,” an agentic AI for automating supply-chain tasks for SMBs — a sign management is pushing AI-driven revenue opportunities. BABA’s Accio Pushes AI From Chat to Execution
• Neutral Sentiment: Price-target dynamics: Susquehanna cut its price target to $170 (citing heavy AI spending) but kept a positive stance — mixed signal: upside remains but margin risks persist. Price target lowered to $170
• Neutral Sentiment: Valuation context: Recent analyses highlight Alibaba’s AI/cloud push and regulatory changes (e.g., delivery rules) as offsetting factors to heavy investment-driven margin pressure — longer-term story still depends on cloud/AI execution. Assessing Alibaba Group Holding valuation after China’s delivery rules and new AI chip and cloud push
• Negative Sentiment: Analyst estimate cuts: Erste Group reduced FY2026 and FY2027 EPS forecasts materially, signaling weaker near-term profit expectations and adding downward pressure on sentiment. MarketBeat: Analyst estimate changes
• Negative Sentiment: Zacks added BABA to its Rank #5 (Strong Sell) list — a headline that can trigger short-term selling and amplify volatility despite other upgrades. New Strong Sell Stocks for March 27th
• Negative Sentiment: Profit pressure: Coverage and headlines note heavy AI spending has driven a steep profit decline and prompted price-target cuts — this underpins the negative near-term earnings narrative. Alibaba Price Target Slashed to $170 as Heavy AI Spending Drags Profits Down 67%

Institutional Investors Weigh In On Alibaba Group

Hedge funds have recently modified their holdings of the company. Capital World Investors increased its stake in shares of Alibaba Group by 7.7% in the 4th quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock valued at $953,527,000 after purchasing an additional 466,847 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Alibaba Group by 7,680.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock worth $881,554,000 after purchasing an additional 5,936,847 shares during the period. Fisher Asset Management LLC boosted its position in Alibaba Group by 0.8% during the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer’s stock worth $782,135,000 after purchasing an additional 42,297 shares in the last quarter. Norges Bank acquired a new stake in Alibaba Group in the second quarter valued at approximately $527,243,000. Finally, American Century Companies Inc. grew its holdings in Alibaba Group by 17.7% in 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 purchasing an additional 448,484 shares during the period. 13.47% of the stock is owned by hedge funds and other institutional investors.

Alibaba Group Price Performance

The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $292.96 billion, a PE ratio of 23.15, a PEG ratio of 3.18 and a beta of 0.43. The stock has a 50-day moving average price of $149.79 and a 200 day moving average price of $157.95.

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.