Alibaba Group (NYSE:BABA) Stock Price Down 3.4% – What’s Next?

07 Jan 2026, 00:13 by Mitch Edgeman · The Markets Daily

Alibaba Group Holding Limited (NYSE:BABA – Get Free Report) shares dropped 3.4% on Tuesday . The stock traded as low as $150.86 and last traded at $150.92. Approximately 12,742,773 shares traded hands during trading, a decline of 12% from the average daily volume of 14,413,651 shares. The stock had previously closed at $156.26.

More Alibaba Group News

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

Positive Sentiment: AI product push: Alibaba’s Amap and visual/3D AI tools and other visual-AI features position the company to challenge rivals in local services and instant commerce, driving optimism that innovation will boost user engagement and monetization. Alibaba’s Amap muscles up on ‘world models’
Positive Sentiment: Cloud & AI revenue momentum: Analyst pieces highlight accelerating AI-driven cloud growth (large YoY cloud gains and strong adoption of Qwen models), which could underpin long-term revenue expansion despite near-term margin pressure from heavy investment. Alibaba Is Building An AI Arsenal
Positive Sentiment: Commercial partnerships: A new MOU with Shinsegae to expand global sales of Korean products supports cross‑border GMV growth on Alibaba’s platforms and underscores potential merchant and category expansion in e‑commerce. Shinsegae, Alibaba sign MOU
Positive Sentiment: Institutional & analyst backing: Recent data shows many big institutions adding BABA and a string of buy/outperform ratings with median targets well above current levels, supporting upside expectations if execution on AI/cloud continues. Alibaba Group Holding Limited Stock Opinions
Neutral Sentiment: Valuation and rotation risks: Commentary asks whether investors should revisit BABA after a large rally, noting mixed social-media views—some celebrate AI upside, others warn that high AI investment and a soft macro backdrop make near-term returns uncertain. Is It Time To Revisit Alibaba
Negative Sentiment: Legal/investor pressure: A Pomerantz investor investigation notice into Alibaba may increase selling pressure or create short‑term uncertainty for shareholders while the inquiry proceeds. Pomerantz Investigates Claims on Behalf of Investors

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Arete Research set a $172.00 price target on Alibaba Group in a report on Tuesday, December 9th. Arete cut Alibaba Group from a “buy” rating to a “neutral” rating and set a $172.00 target price for the company. in a research note on Tuesday, December 9th. Mizuho set a $195.00 target price on Alibaba Group in a report on Wednesday, October 22nd. Loop Capital set a $140.00 price target on Alibaba Group in a report on Tuesday. Finally, Wall Street Zen lowered shares of Alibaba Group from a “hold” rating to a “sell” rating in a research note on Friday, November 28th. Seventeen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Alibaba Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $192.11.

Check Out Our Latest Analysis on BABA

Alibaba Group Trading Down 3.4%

The business has a fifty day moving average of $157.76 and a 200-day moving average of $145.20. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.46 and a current ratio of 1.46. The company has a market capitalization of $360.11 billion, a P/E ratio of 20.85, a PEG ratio of 2.41 and a beta of 0.37.

Institutional Investors Weigh In On Alibaba Group

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC increased its holdings in Alibaba Group by 40.4% during the 4th quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer’s stock worth $289,000 after purchasing an additional 981 shares in the last quarter. Axiom Investors LLC DE purchased a new position in shares of Alibaba Group during the first quarter valued at approximately $276,909,000. Advisors Asset Management Inc. boosted its position in shares of Alibaba Group by 18.0% during the first quarter. Advisors Asset Management Inc. now owns 4,941 shares of the specialty retailer’s stock valued at $653,000 after buying an additional 754 shares during the last quarter. AQR Capital Management LLC bought a new stake in Alibaba Group during the first quarter worth $254,000. Finally, Scientech Research LLC raised its position in Alibaba Group by 45.3% in the 1st quarter. Scientech Research LLC now owns 4,751 shares of the specialty retailer’s stock valued at $628,000 after buying an additional 1,481 shares during the last quarter. 13.47% of the stock is owned by institutional investors.

About Alibaba Group

(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.