Alibaba Group (NYSE:BABA) Trading Down 2.6% – What’s Next?

Shares of Alibaba Group Holding Limited (NYSE:BABA) were down 2.6% during mid-day trading on Friday . The company traded as low as $169.47 and last traded at $169.70. Approximately 10,746,530 shares were traded during trading, a decline of 30% from the average daily volume of 15,452,530 shares. The stock had previously closed at $174.25.

Key Headlines Impacting Alibaba Group

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

• Positive Sentiment: Alibaba’s chip unit T-Head unveiled the self-developed AI chip Zhenwu 810E, which the company says completes its AI “golden triangle” (chip, cloud, models). This strengthens Alibaba’s cloud/AI moat and reduces reliance on foreign suppliers. Alibaba’s T-Head unveils self-developed AI chip Zhenwu 810E
• Positive Sentiment: Alibaba struck a major logistics deal (~$2 billion) to deploy Robovans and is consolidating logistics and autonomous-driving units (Zelos), aiming to cut delivery costs and scale automated fulfillment — a long-term cost-saver that supports margins if execution succeeds. Alibaba Reshapes Logistics With $2 Billion Robovan Deal
• Neutral Sentiment: Alibaba and ByteDance plan new AI model launches for Lunar New Year — shows intense domestic AI competition but also validates large addressable demand for Chinese generative-AI services. Competitive dynamics could spur adoption but also require continued spending. ByteDance and Alibaba to release new AI models for Lunar New Year – Information
• Neutral Sentiment: Media coverage of analyst ratings remains mixed; some Wall Street commentary is bullish on BABA’s long-term AI/cloud story but investors should treat upgrades/downgrades as sentiment drivers rather than fundamentals. Is It Worth Investing in Alibaba (BABA) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Near-term margin pressure: Q2 FY26 results and analyst write-ups highlight modest revenue growth but steep margin erosion as competition and heavy AI/logistics spending weigh on profits — a key reason for today’s downward price move. BABA’s Margins Suffer From Stiff Competition: Time to Sell the Stock?

Wall Street Analysts Forecast Growth

BABA has been the topic of a number of recent analyst reports. Rosenblatt Securities set a $195.00 target price on Alibaba Group in a research note on Wednesday, November 26th. Arete Research upgraded shares of Alibaba Group from a “neutral” rating to a “buy” rating and set a $190.00 price target on the stock in a report on Wednesday, January 21st. Weiss Ratings reiterated a “buy (b-)” rating on shares of Alibaba Group in a report on Wednesday, January 21st. Freedom Capital cut shares of Alibaba Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Finally, Mizuho set a $195.00 target price on shares of Alibaba Group in a research report on Wednesday, October 22nd. Eighteen investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $195.17.

Alibaba Group Stock Performance

The firm’s fifty day moving average price is $158.25 and its 200 day moving average price is $151.60. The firm has a market cap of $405.14 billion, a P/E ratio of 23.44, a price-to-earnings-growth ratio of 3.83 and a beta of 0.37. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.46 and a current ratio of 1.46.

Institutional Trading of Alibaba Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Rosenberg Matthew Hamilton bought a new stake in Alibaba Group during the second quarter valued at about $26,000. Ameriflex Group Inc. boosted its holdings 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 in the last quarter. Mather Group LLC. purchased a new position in shares of Alibaba Group in the 3rd quarter worth approximately $30,000. Foster Dykema Cabot & Partners LLC bought a new position in shares of Alibaba Group during the 3rd quarter worth approximately $30,000. Finally, NBT Bank N A NY lifted its position in Alibaba Group by 231.5% during the third quarter. NBT Bank N A NY now owns 179 shares of the specialty retailer’s stock valued at $32,000 after acquiring an additional 125 shares during the last quarter. Institutional investors own 13.47% of the company’s stock.

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.