Alibaba Group (NYSE:BABA) Shares Down 1.8% – Should You Sell?

Shares of Alibaba Group Holding Limited (NYSE:BABA) fell 1.8% during trading on Tuesday . The company traded as low as $133.82 and last traded at $134.7860. 15,882,060 shares were traded during trading, an increase of 37% from the average session volume of 11,570,454 shares. The stock had previously closed at $137.30.

Alibaba Group News Summary

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

• Positive Sentiment: Alibaba’s push to integrate its Qwen AI platform with Taobao could improve shopping engagement and open a new “chat-to-buy” experience that may boost conversion rates. Alibaba Aims to Integrate AI Platform and eCommerce Marketplace
• Positive Sentiment: Fresh AI product rollouts and analyst upgrades have refocused attention on Alibaba’s growth story, helping offset some valuation concerns. Alibaba Group Holding (NYSE:BABA) Valuation Check As AI Launches And Analyst Upgrades Refocus Attention
• Positive Sentiment: Alibaba’s broader AI shopping push, including conversational shopping tools and robotics efforts, is being viewed as a potential long-term catalyst for the ecommerce franchise. Alibaba’s AI Shopping And Robotics Push Meets Discounted Valuation Story
• Neutral Sentiment: Reports suggest Alibaba is accelerating its “chat to buy” strategy by merging Qwen AI with Taobao, but the market is still waiting to see whether the feature materially lifts revenue. Alibaba to merge Qwen AI with Taobao in push for new AI-powered conversational shopping experience
• Neutral Sentiment: Investors are also watching the Trump-Xi summit for any broader impact on U.S.-China tech sentiment, which could affect Alibaba alongside other Chinese stocks. How the Trump–Xi summit could impact US, Chinese tech stocks
• Neutral Sentiment: Luxury brands Saint Laurent and Miu Miu briefly restricted purchases on Tmall over suspected livestreaming-related abuse, highlighting marketplace friction but not yet indicating a lasting hit to Alibaba’s business. Alibaba Luxury Tensions Over Livestreaming Abuse And Investor Takeaways
• Negative Sentiment: Several previews and commentary ahead of fiscal Q4 earnings point to rising revenue but steep profit declines, with subsidies and AI investment costs likely to pressure margins. Should You Hold or Fold Alibaba Stock Ahead of Q4 Earnings?
• Negative Sentiment: Broader coverage warns that Tencent and Alibaba are facing slowing growth as AI costs mount, reinforcing concerns that profitability may lag near term. Tencent, Alibaba Face Slowing Growth as AI Costs Mount

Analysts Set New Price Targets

A number of brokerages have recently commented on BABA. Mizuho dropped their target price on shares of Alibaba Group from $195.00 to $190.00 and set an “outperform” rating on the stock in a report on Friday, March 20th. Nomura lifted their price target on Alibaba Group from $193.00 to $237.00 and gave the stock a “buy” rating in a research report on Monday, January 26th. Weiss Ratings lowered Alibaba Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, February 27th. Erste Group Bank lowered Alibaba Group from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. lowered 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. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Alibaba Group has an average rating of “Moderate Buy” and an average price target of $188.75.

Alibaba Group Trading Down 1.8%

The firm has a 50-day moving average price of $131.66 and a 200-day moving average price of $150.13. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.33 and a current ratio of 1.33. The stock has a market cap of $323.36 billion, a PE ratio of 25.43, a price-to-earnings-growth ratio of 2.42 and a beta of 0.50.

Alibaba Group (NYSE:BABA) last posted its quarterly earnings results on Saturday, February 14th. The specialty retailer reported $0.13 earnings per share (EPS) for the quarter. The firm had revenue of $40.71 billion during the quarter. Alibaba Group had a return on equity of 7.43% and a net margin of 9.12%. As a group, equities analysts anticipate that Alibaba Group Holding Limited will post 4.32 EPS for the current fiscal year.

Hedge Funds Weigh In On Alibaba Group

A number of hedge funds have recently bought and sold shares of BABA. Northwestern Mutual Wealth Management Co. raised its position 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 buying an additional 5,936,847 shares during the last quarter. Capital World Investors raised its position in Alibaba Group by 1,074.9% in the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock worth $1,079,229,000 after buying an additional 5,524,354 shares during the last quarter. Norges Bank purchased a new position in Alibaba Group in the 4th quarter worth about $594,477,000. Artisan Partners Limited Partnership purchased a new position in Alibaba Group in the 3rd quarter worth about $290,208,000. Finally, Trivest Advisors Ltd purchased a new position in Alibaba Group in the 3rd quarter worth about $202,126,000. Hedge funds and other institutional investors own 13.47% of the company’s stock.

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.