Erste Group Bank Downgrades Alibaba Group (NYSE:BABA) to Hold

Alibaba Group (NYSE:BABA) was downgraded by Erste Group Bank from a “buy” rating to a “hold” rating in a report issued on Wednesday.

Several other analysts have also recently weighed in on the stock. Mizuho set a $195.00 price target on shares of Alibaba Group in a research note on Wednesday, October 22nd. Loop Capital set a $140.00 price objective on Alibaba Group in a research report on Tuesday, January 6th. Macquarie Infrastructure restated an “outperform” rating on shares of Alibaba Group in a research report on Tuesday, November 25th. Citigroup upped their price target on Alibaba Group from $218.00 to $225.00 and gave the company a “buy” rating in a research note on Wednesday, November 26th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Alibaba Group from $240.00 to $230.00 and set an “overweight” rating on the stock in a report on Wednesday, November 26th. Seventeen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $195.17.

Alibaba Group Price Performance

Shares of Alibaba Group stock traded up $1.71 on Wednesday, hitting $157.14. The company’s stock had a trading volume of 677,217 shares, compared to its average volume of 13,157,938. The company has a market capitalization of $375.16 billion, a price-to-earnings ratio of 21.72, a price-to-earnings-growth ratio of 3.41 and a beta of 0.39. Alibaba Group has a 1 year low of $95.73 and a 1 year high of $192.67. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a fifty day moving average price of $159.11 and a 200-day moving average price of $155.99.

Institutional Trading of Alibaba Group

Several large investors have recently modified their holdings of the business. Brighton Jones LLC raised its position in shares of Alibaba Group by 40.4% in the fourth quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer’s stock valued at $289,000 after buying an additional 981 shares during the last quarter. AQR Capital Management LLC acquired a new position in Alibaba Group in the 1st quarter valued at $254,000. Harbour Investments Inc. lifted its stake in shares of Alibaba Group by 5.0% during the 2nd quarter. Harbour Investments Inc. now owns 2,642 shares of the specialty retailer’s stock worth $300,000 after purchasing an additional 127 shares during the period. Stratos Wealth Partners LTD. boosted its holdings in shares of Alibaba Group by 63.7% during the second quarter. Stratos Wealth Partners LTD. now owns 10,063 shares of the specialty retailer’s stock worth $1,141,000 after purchasing an additional 3,917 shares during the last quarter. Finally, Stephens Inc. AR grew its position in shares of Alibaba Group by 10.4% in the second quarter. Stephens Inc. AR now owns 8,133 shares of the specialty retailer’s stock valued at $922,000 after purchasing an additional 767 shares during the period. 13.47% of the stock is currently owned by institutional investors and hedge funds.

Alibaba Group News Summary

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

• Positive Sentiment: New AI product boost — Alibaba launched the Qwen‑3.5 model, which the company says runs up to 8x faster with materially lower costs and agentic capabilities; this strengthens Alibaba’s cloud/AI revenue thesis and is driving investor optimism. Alibaba Group unveils Qwen3.5 as China’s chatbot race shifts to AI agents
• Positive Sentiment: Cloud traction cited by bulls — analysts note cloud revenue growth (reported +34% YoY) and argue shares are undervalued if AI-related revenue and normalized EPS recover, supporting a case for upside to ~$176–$200/share. Alibaba: Shares At Critical Support Into Earnings, AI Capex In Focus
• Positive Sentiment: Analyst tone mixed-to-favorable — some broker consensus sits at a “Moderate Buy,” adding to near‑term demand as investors position for Q3 results and AI cadence. Alibaba Group Holding Limited (NYSE:BABA) Receives Consensus Rating of “Moderate Buy” from Analysts
• Neutral Sentiment: Competitive backdrop — comparisons to Amazon and regional peers highlight both Alibaba’s AI/capex push and areas where rivals (e.g., AWS) currently hold advantages; this is a longer‑term strategic factor rather than an immediate catalyst. Amazon vs. Alibaba: Which E-Commerce Titan Has an Edge Right Now?
• Negative Sentiment: Earnings and margin concerns — a sell-side note warns risks outweigh rewards after Q2 showed steep operating income declines and negative levered free cash flow as AI investments compressed margins; the recent rally was largely multiple expansion, not earnings improvement. Alibaba: Risk Outweighs Reward In Its Q3 Earnings Despite AI Chips
• Negative Sentiment: Regulatory and legal overhangs — an ongoing securities‑fraud investigation and fresh media reports about Pentagon scrutiny/blacklist risk have recently pressured sentiment and could pose execution or reputational headwinds. Securities-Fraud-Investigation-Into-Alibaba Group Holding Ltd. (BABA) Continues
• Negative Sentiment: Geopolitical / defense scrutiny — reports that the Pentagon has examined Alibaba’s AI work have been linked to a recent slide and raise potential policy/regulatory risk that could affect business with certain customers. Alibaba Faces Pentagon Scrutiny As Qwen 3.5 Sharpens AI Investment Case

About Alibaba Group

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.