Alibaba Group (NYSE:BABA) Issues Earnings Results, Misses Expectations By $0.49 EPS

Alibaba Group (NYSE:BABA) announced its quarterly earnings data on Thursday. The specialty retailer reported $1.01 earnings per share for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.49), Zacks reports. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%.

Alibaba Group Price Performance

Alibaba Group stock opened at $129.04 on Thursday. The firm has a market capitalization of $309.32 billion, a PE ratio of 21.19, a P/E/G ratio of 2.37 and a beta of 0.49. Alibaba Group has a 52 week low of $91.99 and a 52 week high of $192.67. The firm’s 50-day simple moving average is $113.43 and its 200 day simple moving average is $128.65. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.21.

Analysts Set New Price Targets

A number of research firms recently weighed in on BABA. Wall Street Zen upgraded Alibaba Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 23rd. Barclays raised their target price on Alibaba Group from $186.00 to $195.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. BNP Paribas Exane started coverage on shares of Alibaba Group in a research note on Wednesday, April 29th. They issued an “outperform” rating and a $209.00 price objective for the company. Susquehanna boosted their price objective on shares of Alibaba Group from $170.00 to $185.00 and gave the stock a “positive” rating in a report on Friday, May 15th. Finally, HSBC set a $170.00 target price on shares of Alibaba Group in a research report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Alibaba Group presently has an average rating of “Moderate Buy” and a consensus price target of $186.90.

Insider Activity at Alibaba Group

In other Alibaba Group news, CFO Hong Xu sold 175,054 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $12.15, for a total value of $2,126,906.10. Following the sale, the chief financial officer owned 280,496 shares of the company’s stock, valued at $3,408,026.40. This represents a 38.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Fang Jiang sold 4,898 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $12.09, for a total transaction of $59,216.82. Following the completion of the sale, the insider owned 5,559,511 shares in the company, valued at $67,214,487.99. This represents a 0.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 920,303 shares of company stock valued at $70,796,370 in the last quarter. 12.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Alibaba Group

Several hedge funds have recently bought and sold shares of BABA. Northern Trust Corp lifted its position in shares of Alibaba Group by 3.9% in the fourth quarter. Northern Trust Corp now owns 1,811,228 shares of the specialty retailer’s stock valued at $265,490,000 after acquiring an additional 67,421 shares in the last quarter. CI Investments Inc. raised its stake in Alibaba Group by 95.1% in the 4th quarter. CI Investments Inc. now owns 990,036 shares of the specialty retailer’s stock valued at $145,119,000 after purchasing an additional 482,493 shares during the last quarter. Nuveen LLC raised its stake in Alibaba Group by 1.4% in the 4th quarter. Nuveen LLC now owns 906,910 shares of the specialty retailer’s stock valued at $132,935,000 after purchasing an additional 12,339 shares during the last quarter. Third Point LLC purchased a new position in Alibaba Group in the 4th quarter valued at about $120,928,000. Finally, Raymond James Financial Inc. lifted its holdings in Alibaba Group by 1.7% in the 3rd quarter. Raymond James Financial Inc. now owns 660,126 shares of the specialty retailer’s stock valued at $117,984,000 after purchasing an additional 10,906 shares in the last quarter. Hedge funds and other institutional investors own 13.47% of the company’s stock.

Key Stories Impacting Alibaba Group

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

• Positive Sentiment: Cloud growth remains a major catalyst: Alibaba said cloud revenue increased 45% year over year, driven by demand for AI-related services. Overall quarterly revenue rose 9%, while the “618” shopping festival supported the core e-commerce business. Alibaba cloud revenue rises 45% even as AI spending weighs on profit
• Positive Sentiment: AI strategy is attracting investor interest: Alibaba continues to expand its Qwen AI ecosystem and recently introduced new AI tools for consumers and merchants. The company’s decision to sell Lingxi Games for reportedly more than $2 billion also signals a sharper focus on AI and cloud infrastructure. Alibaba cashes out of gaming to double down on AI
• Positive Sentiment: Analyst targets imply potential upside: Recent targets include $185 from Susquehanna, $195 from Mizuho and Barclays, and $205 from JPMorgan. The six-month median target is $195, suggesting analysts remain constructive on Alibaba’s longer-term AI and cloud opportunity.
• Neutral Sentiment: Institutional positioning is mixed: 549 institutions increased their holdings in the latest quarter, while 811 reduced positions. JPMorgan and Barclays were notable buyers, whereas FMR, SIH Partners and HHLR Advisors cut positions.
• Negative Sentiment: Fiscal Q1 2027 results missed expectations: Alibaba reported earnings of $8.47 per share versus the $10.62 consensus estimate. Revenue of approximately $266.45 billion also trailed estimates of roughly $274.32 billion. Alibaba Group releases Q1 2027 earnings
• Negative Sentiment: Profitability is under pressure: Aggressive AI infrastructure spending, capital expenditures and quick-commerce investments are weighing on earnings despite rapid cloud growth. Investors will likely watch whether AI revenue can eventually offset these costs.
• Negative Sentiment: Legal and governance risks remain: Multiple law firms have publicized securities-fraud lawsuits involving allegations related to AI disclosures and other company statements. Insider activity is also a negative signal, with nine reported open-market sales and no purchases over the past six months.

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.