Alibaba Group (NYSE:BABA) Shares Down 2.9% – Time to Sell?

Alibaba Group Holding Limited (NYSE:BABA) shares fell 2.9% during trading on Wednesday . The stock traded as low as $156.78 and last traded at $158.96. 11,769,996 shares were traded during mid-day trading, a decline of 20% from the average session volume of 14,674,829 shares. The stock had previously closed at $163.65.

More Alibaba Group News

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

• Positive Sentiment: Alibaba showcased cloud-based AI products and an AI suite at the Milano‑Cortina 2026 Winter Olympics, highlighting commercial use cases and brand/technology visibility that support its cloud and AI monetization path. Chatbots to replays: Alibaba rolls out AI suite for 2026 Winter Olympics
• Positive Sentiment: Analysis of Alibaba’s new processor suggests progress on silicon and that application ecosystem (software + services) will determine chip success — a constructive development for its AI hardware/software strategy. Analysis: Alibaba’s New Processor Shows Applications Are Key to AI Chip Success
• Positive Sentiment: Regulatory filing (Form 6‑K) shows minimal share issuance and confirms the public float in January, reducing short‑term dilution concerns for shareholders. Alibaba Reports Minimal Share Issuance and Confirms Public Float
• Neutral Sentiment: Street commentary and analyst pieces are weighing Alibaba’s next leg after a strong one‑year rally; views differ on valuation vs. growth trajectory. Where is Alibaba Group Holding Limited (BABA) Headed According to the Street?
• Neutral Sentiment: Coverage assessing the stock after a strong rally and recent pullback — useful for investors deciding whether current weakness is a buying opportunity or consolidation. Assessing Alibaba Group Holding After Strong 1 Year Rally And Recent Pullback
• Neutral Sentiment: Reports that Robovan (Alibaba unit) is set to invest in Zelos Technology signal continued strategic moves into robotics/EV adjacent areas, but near‑term impact is unclear. Robovan to invest in Zelos Technology (WSJ/Report)
• Negative Sentiment: Alibaba is committing large Lunar New Year subsidies / marketing (reported ~$420–431M) to push its AI app and user growth — a meaningful near‑term cash outlay that can pressure margins and feed short‑term investor concern over ROI and profitability. Alibaba’s Expanding AI Push Puts Chip And Qwen Ambitions In Focus
• Negative Sentiment: Market reaction has shown short‑term selling pressure with a larger dip than the broader market in recent sessions, reflecting profit‑taking and sensitivity to the heavy AI spending headlines. Alibaba Sees a More Significant Dip Than Broader Market

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Alibaba Group in a research report on Wednesday, January 21st. Morgan Stanley cut their price target on shares of Alibaba Group from $200.00 to $180.00 and set an “overweight” rating for the company in a report on Thursday, January 8th. Barclays boosted their price objective on shares of Alibaba Group from $190.00 to $195.00 and gave the stock an “overweight” rating in a report on Wednesday, November 26th. Wall Street Zen lowered shares of Alibaba Group from a “hold” rating to a “sell” rating in a research report on Friday, November 28th. Finally, Macquarie reiterated an “outperform” rating on shares of Alibaba Group in a research report on Tuesday, November 25th. Eighteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $195.17.

Alibaba Group Stock Performance

The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.23. The stock’s 50 day moving average is $158.86 and its 200 day moving average is $153.19. The stock has a market capitalization of $379.50 billion, a price-to-earnings ratio of 21.96, a PEG ratio of 3.67 and a beta of 0.39.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Capital World Investors increased its position in Alibaba Group by 1,074.9% during the third 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 in the last quarter. Norges Bank purchased a new stake in shares of Alibaba Group in the second quarter valued at $527,243,000. Alkeon Capital Management LLC acquired a new stake in shares of Alibaba Group during the second quarter valued at $184,291,000. Artisan Partners Limited Partnership acquired a new stake in shares of Alibaba Group during the third quarter valued at $290,208,000. Finally, Trivest Advisors Ltd purchased a new stake in Alibaba Group during the 3rd quarter worth about $202,126,000. 13.47% of the stock is currently 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.