Alibaba Group (NYSE:BABA) Trading Down 2.4% – What’s Next?

Alibaba Group Holding Limited (NYSE:BABA) fell 2.4% during trading on Monday . The stock traded as low as $147.21 and last traded at $148.5360. 8,642,114 shares traded hands during trading, a decline of 56% from the average session volume of 19,582,719 shares. The stock had previously closed at $152.24.

Alibaba Group News Roundup

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

• Positive Sentiment: Alibaba and Abu Dhabi are backing MiniMax’s planned IPO (?$600M), signaling strategic AI-related investment and a vote of confidence in Alibaba’s AI ecosystem and partner network. Alibaba, Abu Dhabi back MiniMax IPO in landmark China AI moment
• Positive Sentiment: Institutional buying: Invesco’s EQV European Equity Fund added Alibaba to its portfolio — a sign of continued institutional interest that can support the stock. Alibaba Group Holding Ltd: A Major Addition to Invesco EQV European Equity Fund’s Portfolio
• Positive Sentiment: Management incentives: Alibaba granted new RSU awards under its 2024 equity incentive plan, which can help retain key talent during its AI push and align management with shareholder value. Alibaba grants new RSU awards under 2024 equity incentive plan
• Positive Sentiment: Operational/strategy update: Analysts and reports highlight Alibaba’s continued AI investments and a solid Q3 performance, framing AI spending as a long-term growth strategy that may offset near-term macro pressure. Alibaba’s Strategic AI Investments Counter Economic Headwinds Alibaba Group Holding (BABA) Limited Reported a Good Q3
• Neutral Sentiment: Market context/caution: A Barron’s piece notes that past strong years were followed by pullbacks and highlights risks to watch despite the recent AI-fueled rally — useful context for risk-sensitive investors. Last Time Alibaba Stock Had a Year This Good, It Got Ugly. One Risk To Watch.
• Negative Sentiment: Potential legal risk: Pomerantz has opened an investor investigation into Alibaba, which can increase uncertainty and potential litigation-related costs or disclosures. Pomerantz investigates claims on behalf of Alibaba investors
• Negative Sentiment: E?commerce headwinds and margin pressure: Analysts flag slowing e?commerce momentum, rising competition and heavy AI/logistics spending that are squeezing margins — a nearer-term earnings risk. Will Alibaba Stock Recover Amid Slowing E-Commerce Market Momentum?
• Negative Sentiment: China macro/sentiment concerns remain a drag: Traders on CNBC’s ‘Fast Money’ and other market commentators point to China-related worries that can amplify short-term volatility. ‘Fast Money’ traders talk Alibaba shares dipping on China worries

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on BABA shares. Nomura increased their price target on Alibaba Group from $170.00 to $215.00 and gave the stock a “buy” rating in a report on Thursday, October 9th. Arete downgraded shares of Alibaba Group from a “buy” rating to a “neutral” rating and set a $172.00 target price on the stock. in a research report on Tuesday, December 9th. Citigroup raised their price target on shares of Alibaba Group from $218.00 to $225.00 and gave the stock a “buy” rating in a report on Wednesday, November 26th. Sanford C. Bernstein decreased their price target on shares of Alibaba Group from $200.00 to $190.00 and set an “outperform” rating for the company in a research note on Wednesday, November 26th. Finally, Wall Street Zen cut shares of Alibaba Group from a “hold” rating to a “sell” rating in a research report on Friday, November 28th. Seventeen analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $194.00.

Alibaba Group Price Performance

The stock has a market capitalization of $349.76 billion, a P/E ratio of 20.25, a price-to-earnings-growth ratio of 2.30 and a beta of 0.33. The business’s 50 day simple moving average is $159.48 and its two-hundred day simple moving average is $144.16. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.23.

Institutional Trading of Alibaba Group

Institutional investors and hedge funds have recently modified their holdings of the stock. Kingstone Capital Partners Texas LLC grew its holdings in Alibaba Group by 1,349,768.3% during the second quarter. Kingstone Capital Partners Texas LLC now owns 49,013,718 shares of the specialty retailer’s stock worth $5,558,646,000 after buying an additional 49,010,087 shares in the last quarter. Capital World Investors boosted its holdings in Alibaba Group by 1,074.9% during the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer’s stock worth $1,079,229,000 after acquiring an additional 5,524,354 shares during the last quarter. Norges Bank bought a new stake in shares of Alibaba Group in the 2nd quarter worth $527,243,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Alibaba Group by 85.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,557,495 shares of the specialty retailer’s stock valued at $1,131,558,000 after purchasing an additional 3,947,460 shares during the last quarter. Finally, Axiom Investors LLC DE purchased a new stake in shares of Alibaba Group in the first quarter valued at about $276,909,000. 13.47% of the stock is owned by hedge funds and other institutional investors.

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.