Erste Group Bank Predicts Weaker Earnings for Alibaba Group

Alibaba Group Holding Limited (NYSE:BABA) – Investment analysts at Erste Group Bank reduced their FY2027 earnings estimates for shares of Alibaba Group in a note issued to investors on Tuesday, May 12th. Erste Group Bank analyst H. Engel now forecasts that the specialty retailer will earn $6.15 per share for the year, down from their prior forecast of $6.31. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Alibaba Group’s current full-year earnings is $6.67 per share.

Alibaba Group (NYSE:BABA) last posted its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. The company had revenue of $35.30 billion for the quarter.

Several other research firms have also recently issued reports on BABA. Nomura increased their target price on shares of Alibaba Group from $200.00 to $207.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. BNP Paribas Exane started coverage on shares of Alibaba Group in a research report on Wednesday, April 29th. They set an “outperform” rating and a $209.00 price target for the company. Argus upgraded shares of Alibaba Group to a “hold” rating in a research note on Tuesday, March 24th. Weiss Ratings lowered shares of Alibaba Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, February 27th. Finally, Jefferies Financial Group lowered their target price on shares of Alibaba Group from $225.00 to $212.00 and set a “buy” rating on the stock in a report on Thursday, March 19th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $188.76.

Alibaba Group Stock Up 1.7%

Alibaba Group stock opened at $135.58 on Monday. The company has a market capitalization of $325.27 billion, a P/E ratio of 22.26, a P/E/G ratio of 2.31 and a beta of 0.50. The company has a quick ratio of 1.33, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. The firm has a 50 day moving average price of $131.80 and a 200-day moving average price of $148.55. Alibaba Group has a twelve month low of $103.71 and a twelve month high of $192.67.

Institutional Investors Weigh In On Alibaba Group

Institutional investors have recently added to or reduced their stakes in the stock. Ameriflex Group Inc. raised its holdings in Alibaba Group by 101.4% in the 3rd quarter. Ameriflex Group Inc. now owns 143 shares of the specialty retailer’s stock valued at $26,000 after buying an additional 72 shares during the period. Foster Dykema Cabot & Partners LLC purchased a new position in shares of Alibaba Group in the 3rd quarter worth about $30,000. NBT Bank N A NY raised its holdings in shares of Alibaba Group by 231.5% during the 3rd quarter. NBT Bank N A NY now owns 179 shares of the specialty retailer’s stock valued at $32,000 after buying an additional 125 shares during the period. Hoey Investments Inc. raised its position in shares of Alibaba Group by 95.2% in the 1st quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer’s stock valued at $26,000 after purchasing an additional 100 shares in the last quarter. Finally, Palisade Asset Management LLC acquired a new position in shares of Alibaba Group in the 3rd quarter worth approximately $37,000. Institutional investors and hedge funds own 13.47% of the company’s stock.

Alibaba Group Announces Dividend

The firm also recently announced an annual dividend, which will be paid on Monday, July 13th. Shareholders of record on Thursday, June 11th will be issued a dividend of $1.05 per share. This represents a yield of 72.0%. The ex-dividend date is Thursday, June 11th. Alibaba Group’s dividend payout ratio is presently 15.60%.

Alibaba Group News Summary

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

• Positive Sentiment: Investor commentary remains upbeat on Alibaba’s cloud and AI businesses, with several articles highlighting accelerating cloud growth, triple-digit AI revenue gains, and the view that BABA may be evolving into a more compelling AI growth stock.
• Positive Sentiment: Recent bullish pieces argue the stock could be entering a “new era,” pointing to Alibaba’s large planned investment in cloud and AI infrastructure as a long-term growth catalyst.
• Neutral Sentiment: Alibaba continues to attract attention from traders and analysts, with multiple “buy now” and valuation-focused articles reflecting strong interest but no fresh fundamental catalyst.
• Neutral Sentiment: Broader Asia ADR trading was modestly weaker, which may have created some market pressure on Alibaba alongside other Chinese-listed names.
• Negative Sentiment: One recent article said BABA fell after heavy AI and cloud spending squeezed margins, reinforcing investor concern that the company is trading near-term profitability for long-term growth.
• Negative Sentiment: A separate analysis warned that while Alibaba’s cloud promise remains intact, the stock still looks expensive relative to the current earnings profile.

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.