Alibaba Group (NYSE:BABA) Stock Price Down 1.3% – Should You Sell?

28 May 2026, 17:38 by Scott Moore · The Cerbat Gem

Alibaba Group Holding Limited (NYSE:BABA – Get Free Report)’s share price dropped 1.3% during mid-day trading on Thursday . The company traded as low as $123.54 and last traded at $126.1410. Approximately 11,408,997 shares were traded during trading, a decline of 4% from the average daily volume of 11,854,480 shares. The stock had previously closed at $127.76.

Trending Headlines about Alibaba Group

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

Positive Sentiment: Alibaba continues to expand its AI ecosystem, including new partnerships in Macau showcasing cloud, Qwen AI glasses, and other Alibaba technologies for smart-city use cases, which supports the long-term growth narrative. Powering Macau’s Smart Future with AI – MACAU Pass and Ant Bank (Macao) Partner with Alibaba Ecosystem to Showcase Smart City Vision at BEYOND Expo
Positive Sentiment: Brokerages reportedly still rate Alibaba as a “Moderate Buy,” suggesting Wall Street remains constructive despite recent volatility. Alibaba Group Holding Limited (NYSE:BABA) Given Consensus Recommendation of “Moderate Buy” by Brokerages
Positive Sentiment: Media coverage highlighted Alibaba’s AI-driven “Happy Horse” initiative and called attention to the stock as undervalued, reinforcing the idea that AI productization could improve sentiment. Alibaba Happy Horse Awards Spotlight AI Push And Undervalued Stock
Neutral Sentiment: Alibaba, Tencent, and other Chinese tech firms are shifting from chatbots toward embodied AI for robotics, a trend that could create new opportunities but is still early-stage and uncertain. Alibaba, Tencent lead pivot from chatbots to embodied AI for robotics
Neutral Sentiment: Alibaba also detailed logistics for its 2026 dividend and a conversion suspension, which is relevant to shareholders but does not appear to be a major operating catalyst. Alibaba details 2026 dividend logistics and conversion suspension
Negative Sentiment: Recent analyst coverage focused on Alibaba’s cloud and international growth, but also flagged weak profits and cash flow, which may be weighing on the stock. Can Alibaba Stock Recover as Cloud & International Growth Accelerates?
Negative Sentiment: Comparison pieces versus Meta emphasized that Alibaba’s cloud push is coming with margin pressure and higher spending, reinforcing investor concerns about earnings durability. BABA vs. META: Which AI Data Center Giant Is the Better Bet?

Wall Street Analysts Forecast Growth

BABA has been the topic of a number of research reports. Mizuho increased their target price on shares of Alibaba Group from $190.00 to $195.00 and gave the stock an “outperform” rating in a report on Thursday, May 14th. Susquehanna raised their price objective on shares of Alibaba Group from $170.00 to $185.00 and gave the company a “positive” rating in a report on Friday, May 15th. Wall Street Zen upgraded shares of Alibaba Group from a “sell” rating to a “hold” rating in a report on Saturday, May 23rd. Argus upgraded shares of Alibaba Group to a “hold” rating in a report on Tuesday, March 24th. Finally, Erste Group Bank lowered shares of Alibaba Group from a “buy” rating to a “hold” rating in a report on Wednesday, February 18th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $188.76.

Get Our Latest Stock Analysis on BABA

Alibaba Group Price Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.28 and a current ratio of 1.28. The stock’s 50-day moving average is $131.22 and its 200 day moving average is $146.96. The stock has a market capitalization of $302.62 billion, a PE ratio of 20.71, a P/E/G ratio of 2.25 and a beta of 0.50.

Alibaba Group (NYSE:BABA – Get Free Report) last posted its earnings results on Tuesday, March 31st. The specialty retailer reported $0.01 EPS for the quarter. The firm had revenue of $35.30 billion for the quarter. Alibaba Group had a net margin of 10.31% and a return on equity of 4.76%. As a group, equities analysts expect that Alibaba Group Holding Limited will post 6.67 earnings per share for the current year.

Alibaba Group Dividend Announcement

The firm also recently disclosed an annual dividend, which will be paid on Monday, July 13th. Shareholders of record on Thursday, June 11th will be given a dividend of $1.05 per share. This represents a yield of 72.0%. The ex-dividend date of this dividend is Thursday, June 11th. Alibaba Group’s dividend payout ratio (DPR) is presently 15.60%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Capital World Investors lifted its stake in shares of Alibaba Group by 7.7% in the 4th quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer’s stock worth $953,527,000 after acquiring an additional 466,847 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in Alibaba Group by 7,680.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer’s stock worth $881,554,000 after acquiring an additional 5,936,847 shares during the last quarter. Fisher Asset Management LLC raised its position in shares of Alibaba Group by 0.8% in the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer’s stock valued at $782,135,000 after buying an additional 42,297 shares during the last quarter. Norges Bank acquired a new position in shares of Alibaba Group in the fourth quarter valued at approximately $594,477,000. Finally, American Century Companies Inc. raised its position in shares of Alibaba Group by 17.7% in the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer’s stock valued at $533,964,000 after buying an additional 448,484 shares during the last quarter. 13.47% of the stock is owned by hedge funds and other institutional investors.

Alibaba Group Company Profile

(Get Free Report)

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.