Alibaba Group (NYSE:BABA) Trading Up 1.7% – Time to Buy?

Alibaba Group Holding Limited (NYSE:BABA) was up 1.7% during mid-day trading on Tuesday . The stock traded as high as $136.78 and last traded at $135.5820. Approximately 10,961,899 shares were traded during mid-day trading, a decline of 9% from the average daily volume of 11,989,800 shares. The stock had previously closed at $133.26.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Alibaba unveiled its new Zhenwu M890 AI chip, which it says delivers three times the performance of its prior model, reinforcing its domestic semiconductor ambitions and broader AI strategy. Reuters: Alibaba unveils new AI chip in push for domestic alternatives
• Positive Sentiment: Multiple recent reports say Alibaba is entering a new phase of AI commercialization, with cloud and AI revenue growth accelerating and AI products becoming a larger part of the business. Seeking Alpha: Alibaba Is Becoming An AI Giant
• Positive Sentiment: Benchmark reaffirmed its Buy rating and a $220 price target, reflecting continued analyst confidence in Alibaba’s AI and cloud expansion. Yahoo Finance: Benchmark Reaffirms Buy Rating on Alibaba (BABA) Following AI Cloud Expansion
• Neutral Sentiment: One analysis said Alibaba’s revenue growth should improve meaningfully in fiscal 2027 as accounting changes and asset disposals fade, suggesting the current slowdown may be temporary. Seeking Alpha: Alibaba: Consolidated Revenue Growth Will Be Much Higher In FY2027
• Negative Sentiment: Investors are still digesting weaker profitability and the company’s plan to spend more on AI and cloud infrastructure, which may pressure margins and free cash flow in the near term. Quiver Quant: Alibaba slides as investors digest profit squeeze and stepped-up AI spending plans

Analysts Set New Price Targets

Several research analysts have issued reports on BABA shares. Nomura upped their price target on Alibaba Group from $200.00 to $207.00 and gave the company a “buy” rating in a report on Friday, May 15th. Susquehanna upped their price target on Alibaba Group from $170.00 to $185.00 and gave the company a “positive” rating in a report on Friday, May 15th. Erste Group Bank cut Alibaba Group from a “buy” rating to a “hold” rating in a report on Wednesday, February 18th. Robert W. Baird dropped their price target on Alibaba Group from $174.00 to $164.00 and set an “outperform” rating on the stock in a report on Friday, March 20th. Finally, DZ Bank cut Alibaba Group from a “buy” rating to a “hold” rating and set a $135.00 price target on the stock. in a report on Friday, March 20th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Alibaba Group has a consensus rating of “Moderate Buy” and an average price target of $188.76.

Alibaba Group Stock Performance

The firm’s 50 day simple moving average is $131.72 and its 200-day simple moving average is $148.00. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.33 and a current ratio of 1.28. The company has a market capitalization of $315.35 billion, a price-to-earnings ratio of 21.58, a P/E/G ratio of 2.33 and a beta of 0.50.

Alibaba Group (NYSE:BABA) last announced its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share (EPS) 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. Analysts expect that Alibaba Group Holding Limited will post 6.67 EPS for the current year.

Alibaba Group Announces Dividend

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

Institutional Trading of Alibaba Group

Large investors have recently added to or reduced their stakes in the company. Bruce G. Allen Investments LLC grew its stake in shares of Alibaba Group by 26.4% during the third quarter. Bruce G. Allen Investments LLC now owns 302 shares of the specialty retailer’s stock worth $54,000 after acquiring an additional 63 shares during the last quarter. Bluesphere Advisors LLC lifted its holdings in shares of Alibaba Group by 2.2% during the third quarter. Bluesphere Advisors LLC now owns 3,023 shares of the specialty retailer’s stock worth $540,000 after purchasing an additional 64 shares during the period. Transcend Capital Advisors LLC lifted its holdings in shares of Alibaba Group by 1.0% during the third quarter. Transcend Capital Advisors LLC now owns 6,661 shares of the specialty retailer’s stock worth $1,191,000 after purchasing an additional 66 shares during the period. Bleakley Financial Group LLC lifted its holdings in shares of Alibaba Group by 0.4% during the fourth quarter. Bleakley Financial Group LLC now owns 16,420 shares of the specialty retailer’s stock worth $2,407,000 after purchasing an additional 67 shares during the period. Finally, Ameriflex Group Inc. lifted its holdings in shares of Alibaba Group by 101.4% during the third quarter. Ameriflex Group Inc. now owns 143 shares of the specialty retailer’s stock worth $26,000 after purchasing an additional 72 shares during the period. 13.47% of the stock is owned by institutional investors and hedge funds.

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.