Alibaba Group (NYSE:BABA) Upgraded to Hold at Zacks Research

Zacks Research upgraded shares of Alibaba Group (NYSE:BABAFree Report) from a strong sell rating to a hold rating in a research note published on Tuesday,Zacks.com reports.

Several other research firms have also commented on BABA. Benchmark reissued a “buy” rating and issued a $195.00 price target on shares of Alibaba Group in a research report on Tuesday, November 25th. Robert W. Baird dropped their price objective on Alibaba Group from $174.00 to $164.00 and set an “outperform” rating on the stock in a research report on Friday, March 20th. Weiss Ratings lowered Alibaba Group from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, February 27th. Sanford C. Bernstein reduced their target price on shares of Alibaba Group from $200.00 to $190.00 and set an “outperform” rating for the company in a report on Wednesday, November 26th. Finally, Arete Research raised shares of Alibaba Group from a “neutral” rating to a “buy” rating and set a $190.00 price target for the company in a research report on Wednesday, January 21st. Sixteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Alibaba Group presently has an average rating of “Moderate Buy” and a consensus target price of $188.95.

Read Our Latest Research Report on BABA

Alibaba Group Stock Performance

Shares of NYSE:BABA opened at $129.92 on Tuesday. The firm has a 50 day moving average of $151.56 and a 200 day moving average of $158.31. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $310.18 billion, a price-to-earnings ratio of 24.51, a price-to-earnings-growth ratio of 3.08 and a beta of 0.43. Alibaba Group has a 52 week low of $95.73 and a 52 week high of $192.67.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in BABA. Galaxy Group Investments LLC purchased a new stake in Alibaba Group in the fourth quarter valued at about $15,413,000. Purpose Unlimited Inc. acquired a new stake in Alibaba Group in the fourth quarter worth about $3,104,000. World Investment Advisors grew its stake in shares of Alibaba Group by 5.9% during the fourth quarter. World Investment Advisors now owns 10,799 shares of the specialty retailer’s stock worth $1,583,000 after acquiring an additional 606 shares during the last quarter. PeakShares LLC acquired a new position in shares of Alibaba Group during the fourth quarter valued at about $220,000. Finally, Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of Alibaba Group in the 4th quarter valued at approximately $903,000. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Alibaba Group News

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

  • Positive Sentiment: Launch of a proprietary 5nm AI CPU that signals technological self?reliance and potential margin upside — the XuanTie C950 is built for AI inference and cloud workloads, uses RISC?V (reducing licensing/political risk), and supports Alibaba’s vertical integration thesis. Why Alibaba’s New 5nm Chip Could Be a Game Changer
  • Positive Sentiment: Multiple reports confirming the XuanTie C950 and positioning it for cloud/agentic AI workloads — reinforces credibility of the chip story and the potential to compete with large cloud players on custom silicon. Alibaba reveals new AI chip designed for ‘agents’
  • Positive Sentiment: Management is making a major, explicit AI/cloud investment (covered as a ~$100 billion strategic shift), which supports the thesis that short?term profitability sacrifices are funding durable growth in high?margin cloud services. Alibaba Just Made a $100 Billion Bet on AI. Here’s What It Means for Investors.
  • Positive Sentiment: Analyst momentum: an Argus upgrade to “hold” (covered via distribution) adds support to the view that near?term weakness is priced in and consensus sees upside as investments pay off. Read More (Zacks)
  • Neutral Sentiment: New product and organizational moves — launches like Accio Work and separating AI businesses could create standalone revenue streams, but execution/timing are uncertain. Alibaba Reshapes AI With Accio Work And New Standalone Revenue Focus
  • Negative Sentiment: Near?term profitability pressure: recent quarter showed a significant decline in non?GAAP net income as Alibaba prioritizes AI/cloud investments — this explains skepticism and earnings?driven volatility. Why Alibaba’s New 5nm Chip Could Be a Game Changer

About Alibaba Group

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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.

Further Reading

Analyst Recommendations for Alibaba Group (NYSE:BABA)

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