Alibaba Group (NYSE:BABA) Shares Up 3.2% – Should You Buy?

Alibaba Group Holding Limited (NYSE:BABA)’s share price was up 3.2% on Monday . The stock traded as high as $132.57 and last traded at $132.50. Approximately 9,245,596 shares traded hands during trading, a decline of 23% from the average session volume of 11,961,699 shares. The stock had previously closed at $128.41.

Key Headlines Impacting Alibaba Group

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

• Positive Sentiment: Alibaba Cloud is expanding its AI infrastructure. The cloud unit plans to more than double its global modular data-center capacity. Alibaba says its modular approach can deliver AI data centers in about 100 days at approximately 10% lower cost, supporting long-term cloud growth and potentially improving capital efficiency. Alibaba Cloud Plans to More Than Double Global Modular Data Center Capacity
• Positive Sentiment: Alibaba is pursuing new AI monetization opportunities. The company plans to test a paid QwenWork subscription in the United States and reportedly intends to use a royalty model for commercial deployments of its upcoming open-source Qwen model. These initiatives could create revenue streams beyond traditional e-commerce, although their financial impact remains unproven. What Does Alibaba Qwen Royalty Model Mean For Its AI Business?
• Neutral Sentiment: GF Securities reportedly maintained a Buy view on Alibaba, while broader brokerage coverage places the shares at an average “Moderate Buy” recommendation. Separately, upcoming Chinese internet-company earnings are expected to test whether investor interest is rotating from AI infrastructure stocks into large technology platforms. Alibaba Receives Average Recommendation of Moderate Buy
• Negative Sentiment: Analyst earnings expectations have been reduced. Erste Group Bank cut its FY2027 EPS forecast to $5.66 from $5.84 and its FY2028 forecast to $8.21 from $8.46. The revisions suggest some analysts see slower profit growth or increased investment needs, adding to valuation concerns.
• Negative Sentiment: Potential securities-law liabilities are the main near-term overhang. Multiple law firms are promoting a class action covering investors who purchased Alibaba securities from June 26, 2025, through June 24, 2026. The complaint reportedly alleges materially misleading disclosures related to a U.S. Department of Defense designation and claims involving unauthorized AI “distillation.” Investors have until October 5, 2026, to seek lead-plaintiff status. Levi and Korsinsky Alibaba Class Action Notice

Analysts Set New Price Targets

Several brokerages recently issued reports on BABA. Weiss Ratings reissued a “hold (c+)” rating on shares of Alibaba Group in a research note on Wednesday, May 27th. Morgan Stanley lifted their target price on Alibaba Group from $180.00 to $190.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Nomura dropped their price target on Alibaba Group from $207.00 to $178.00 and set a “buy” rating on the stock in a research report on Thursday, June 25th. Susquehanna raised their price target on Alibaba Group from $170.00 to $185.00 and gave the company a “positive” rating in a research note on Friday, May 15th. Finally, Freedom Capital upgraded Alibaba Group from a “hold” rating to a “strong-buy” rating in a report on Friday, April 24th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $186.90.

Alibaba Group Trading Down 2.3%

The stock has a market capitalization of $299.34 billion, a P/E ratio of 20.51, a P/E/G ratio of 2.43 and a beta of 0.49. The stock’s 50 day moving average price is $112.97 and its 200-day moving average price is $130.71. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21.

Alibaba Group (NYSE:BABA) last issued its quarterly earnings data on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. The company had revenue of $35.30 billion during the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. As a group, equities research analysts expect that Alibaba Group Holding Limited will post 6.31 earnings per share for the current year.

Insiders Place Their Bets

In other news, President J. Michael Evans sold 720,000 shares of Alibaba Group stock in a transaction on Monday, June 29th. The stock was sold at an average price of $94.95, for a total value of $68,364,000.00. Following the transaction, the president directly owned 28,000 shares in the company, valued at approximately $2,658,600. This trade represents a 96.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, General Counsel Siying Yu sold 6,772 shares of the business’s stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $12.10, for a total value of $81,941.20. Following the completion of the transaction, the general counsel directly owned 607,234 shares of the company’s stock, valued at approximately $7,347,531.40. The trade was a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 920,303 shares of company stock worth $70,796,370. Insiders own 12.50% of the company’s stock.

Institutional Trading of Alibaba Group

Hedge funds have recently modified their holdings of the company. Jennison Associates LLC boosted its stake in shares of Alibaba Group by 11.9% in the fourth quarter. Jennison Associates LLC now owns 54,235 shares of the specialty retailer’s stock worth $7,950,000 after acquiring an additional 5,760 shares during the last quarter. Aureus Asset Management LLC raised its stake in Alibaba Group by 511.0% in the 1st quarter. Aureus Asset Management LLC now owns 9,361 shares of the specialty retailer’s stock valued at $1,174,000 after purchasing an additional 7,829 shares during the last quarter. Teachers Retirement System of The State of Kentucky raised its stake in Alibaba Group by 24.5% in the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer’s stock valued at $32,567,000 after purchasing an additional 51,000 shares during the last quarter. Thornburg Investment Management Inc. lifted its holdings in Alibaba Group by 5.5% in the 4th quarter. Thornburg Investment Management Inc. now owns 584,028 shares of the specialty retailer’s stock valued at $85,607,000 after purchasing an additional 30,644 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. purchased a new position in Alibaba Group in the 4th quarter valued at $21,266,000. 13.47% of the stock is owned by hedge funds and other institutional investors.

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.