Alibaba Group (NYSE:BABA) Trading Up 1.8% – Should You Buy?

Alibaba Group Holding Limited (NYSE:BABA) shares shot up 1.8% during trading on Wednesday . The company traded as high as $172.80 and last traded at $170.0240. 17,338,052 shares changed hands during mid-day trading, a decline of 2% from the average session volume of 17,709,730 shares. The stock had previously closed at $167.01.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Market reaction is being driven by renewed confidence in Alibaba’s AI capabilities and open-source strategy, highlighted by coverage of Qwen achievements that investors view as a competitive AI asset. Alibaba Shares Surge on Dual Catalysts: AI Leadership and Regulatory Shift
• Positive Sentiment: Reports that Chinese authorities are moving to curb destructive price wars have lifted Alibaba’s commerce- and food-delivery-exposed units, a regulatory tailwind that can help margins in core businesses. Meituan, Alibaba shares jump as China seeks curb price wars
• Positive Sentiment: Alibaba-backed PixVerse launched a real-time AI video tool, underscoring the company’s ecosystem reach in fast-growing AI applications that could feed future cloud and services revenue. Alibaba-backed PixVerse launches real-time AI video tool
• Positive Sentiment: Unusually large options volume in BABA suggests increased trader interest and directional bets, which can amplify intraday moves and signal conviction from some market participants. Alibaba Group Sees Unusually Large Options Volume (NYSE:BABA)
• Neutral Sentiment: Several analysts and fund letters show continued institutional interest and optimistic coverage, providing research support but mixed on valuation vs. peers. Is Alibaba (BABA) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Long-term funds (Oakmark) mention Alibaba in letters, a steady endorsement but not an immediate catalyst. Will Alibaba Group (BABA) be Able to Leverage Its Capabilities?
• Neutral Sentiment: Alibaba is named as a cornerstone investor in a chip designer’s Hong Kong listing, reflecting strategic ecosystem plays but limited direct near-term earnings impact. Chip designer Montage said to rope in Alibaba, JPMorgan as cornerstone investors
• Negative Sentiment: Analysts flag cash-flow pressure as Alibaba’s heavy spending on AI, cloud and quick commerce outpaces monetization, raising near-term risk to free cash flow and margins. Is Alibaba’s Cash Flow Pressure Making Its Growth Strategy Riskier?
• Negative Sentiment: Comparisons to Microsoft highlight execution and margin gaps—Azure’s AI backlog and stronger profitability make MSFT a tougher cloud comparator, underscoring downside risk if Alibaba’s cloud margins don’t improve. Alibaba vs. Microsoft: Which Cloud Stock to Buy on Better AI Upside?

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on BABA shares. Erste Group Bank upgraded Alibaba Group from a “hold” rating to a “buy” rating in a research report on Friday, October 3rd. Wall Street Zen downgraded Alibaba Group from a “hold” rating to a “sell” rating in a research report on Friday, November 28th. Benchmark reaffirmed a “buy” rating and issued a $195.00 target price on shares of Alibaba Group in a research report on Tuesday, November 25th. Citigroup increased their target price on shares of Alibaba Group from $218.00 to $225.00 and gave the stock a “buy” rating in a research note on Wednesday, November 26th. Finally, Jefferies Financial Group reduced their price target on shares of Alibaba Group from $231.00 to $225.00 and set a “buy” rating on the stock in a research note on Thursday, January 8th. Seventeen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $191.84.

Alibaba Group Trading Up 1.8%

The company’s 50 day moving average price is $155.84 and its 200 day moving average price is $146.97. The firm has a market cap of $405.70 billion, a PE ratio of 23.48, a price-to-earnings-growth ratio of 2.58 and a beta of 0.37. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.46 and a quick ratio of 1.46.

Institutional Trading of Alibaba Group

Several hedge funds have recently modified their holdings of BABA. Rosenberg Matthew Hamilton acquired a new position in Alibaba Group during the 2nd quarter worth $26,000. Ameriflex Group Inc. boosted its stake in shares of 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. Mather Group LLC. acquired a new position in shares of Alibaba Group during the third quarter worth about $30,000. Foster Dykema Cabot & Partners LLC acquired a new position in shares of Alibaba Group during the third quarter worth about $30,000. Finally, NBT Bank N A NY increased its stake in shares of Alibaba Group by 231.5% during the third quarter. NBT Bank N A NY now owns 179 shares of the specialty retailer’s stock worth $32,000 after buying an additional 125 shares during the period. 13.47% of the stock is currently owned by institutional investors and hedge funds.

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.