Erste Group Bank Comments on Alibaba Group FY2027 Earnings

Alibaba Group Holding Limited (NYSE:BABA) – Investment analysts at Erste Group Bank increased their FY2027 earnings per share estimates for Alibaba Group in a research report issued to clients and investors on Friday, September 18th. Erste Group Bank analyst S. Lingnau now forecasts that the specialty retailer will earn $5.82 per share for the year, up from their prior forecast of $5.81. The consensus estimate for Alibaba Group’s current full-year earnings is $5.91 per share.

Several other research analysts have also commented on BABA. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $165.00 price objective on shares of Alibaba Group in a research note on Monday, September 7th. Nomura reduced their target price on shares of Alibaba Group from $207.00 to $178.00 and set a “buy” rating on the stock in a research note on Thursday, June 25th. Weiss Ratings lowered shares of Alibaba Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday. Benchmark reaffirmed a “buy” rating on shares of Alibaba Group in a research note on Thursday, August 20th. Finally, HSBC set a $170.00 price target on shares of Alibaba Group in a report on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Alibaba Group currently has a consensus rating of “Moderate Buy” and an average target price of $187.45.

Alibaba Group Stock Performance

NYSE:BABA opened at $115.97 on Tuesday. The stock’s fifty day moving average is $118.06 and its 200 day moving average is $121.81. Alibaba Group has a fifty-two week low of $91.99 and a fifty-two week high of $192.67. The firm has a market capitalization of $288.26 billion, a PE ratio of 28.08, a PEG ratio of 1.49 and a beta of 0.51. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.36 and a current ratio of 1.36.

Alibaba Group (NYSE:BABA) last announced its earnings results on Friday, August 14th. The specialty retailer reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.94 by ($0.68). The company had revenue of $39.64 billion during the quarter, compared to analysts’ expectations of $39.52 billion. Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%.Alibaba Group’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter last year, the firm posted $14.75 EPS.

Insider Activity

In other news, General Counsel Siying Yu sold 6,772 shares of Alibaba Group stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $12.10, for a total transaction of $81,941.20. Following the completion of the sale, the general counsel 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President J. Evans sold 720,000 shares of the business’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $94.95, for a total value of $68,364,000.00. Following the completion of the sale, the president owned 28,000 shares of the company’s stock, valued at $2,658,600. The trade was a 96.26% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 920,303 shares of company stock valued at $70,796,370. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Alibaba Group

Several institutional investors have recently made changes to their positions in BABA. Hoey Investments Inc. lifted its stake in Alibaba Group by 95.2% in the first quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer’s stock worth $26,000 after acquiring an additional 100 shares during the period. Palladiem LLC bought a new stake in Alibaba Group during the 4th quarter valued at $38,000. Key Financial Inc increased its holdings in shares of Alibaba Group by 316.9% in the 4th quarter. Key Financial Inc now owns 271 shares of the specialty retailer’s stock valued at $40,000 after acquiring an additional 206 shares during the period. Continuum Advisory LLC bought a new position in shares of Alibaba Group in the 2nd quarter worth $28,000. Finally, SJS Investment Consulting Inc. lifted its stake in shares of Alibaba Group by 15,000.0% during the 1st quarter. SJS Investment Consulting Inc. now owns 302 shares of the specialty retailer’s stock worth $38,000 after purchasing an additional 300 shares during the last quarter. Hedge funds and other institutional investors own 13.47% of the company’s stock.

Trending Headlines about Alibaba Group

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

• Positive Sentiment: New AI chip and data-center ambitions: Alibaba unveiled the Zhenwu V900, which it says delivers roughly three times the performance of its predecessor. The company plans to build more than 20 gigawatts of global data-center capacity by 2032, strengthening its position in AI infrastructure and potentially supporting long-term cloud growth. Alibaba shares jump as new AI chip, data center buildout plans unveiled
• Positive Sentiment: Broader full-stack AI strategy: Alibaba outlined plans spanning chips, cloud infrastructure, models and AI agents, including a proposed model with 5 trillion to 10 trillion parameters. The strategy signals substantial investment but also creates potential demand for Alibaba Cloud and related AI services. Alibaba plans AI model with 5 trillion to 10 trillion parameters, unveils new chip
• Positive Sentiment: Favorable AI-sector sentiment: Renewed optimism around AI demand, helped by early interest in Meta’s personal-agent technology, lifted chip and AI-related stocks broadly. That sector-wide momentum provided an additional tailwind for Alibaba’s announcement. Alibaba Unveils Powerful AI Chip as Meta Revives AI Optimism
• Neutral Sentiment: Modest analyst estimate increase: Erste Group raised its FY2027 EPS forecast to $5.82 from $5.81, still slightly below the $5.91 consensus estimate. The revision suggests limited immediate earnings impact from the latest developments. Alibaba Group analyst estimate update
• Negative Sentiment: Litigation overhang: Several law firms publicized a securities-fraud class action against Alibaba, with an October 5 lead-plaintiff deadline. The announcements do not establish wrongdoing, but they add headline risk, potential costs and uncertainty for shareholders. Alibaba Group sued for securities law violations
• Negative Sentiment: U.S.-China technology risk: The Pentagon blacklist and ongoing U.S.-China tensions could restrict Alibaba’s access to technology, customers or international markets, potentially complicating its AI ambitions. Pentagon blacklist lingers in Trump-Xi talks

About Alibaba Group

Alibaba Group Holding Limited is a global technology and commerce company founded in 1999 by Jack Ma and a group of co-founders. Headquartered in Hangzhou, China, the company operates a broad ecosystem of businesses serving consumers, merchants, brands and enterprises.

Its core businesses include online and mobile commerce platforms such as Taobao and Tmall in China, as well as international marketplaces including AliExpress and Lazada. Alibaba also provides wholesale commerce, cross-border retail, logistics through Cainiao, local consumer services, digital media and entertainment, and other consumer-focused technology services.

Alibaba Cloud provides cloud computing, data storage, artificial intelligence and related technology solutions to businesses and organizations.