Alibaba Group Holding Limited (NYSE:BABA) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Wall Street’s consensus rating is “Moderate Buy”: Of 21 analysts, 14 recommend buying, five rate the stock a hold and two issue a strong-buy rating. The average 12-month price target is $187.05.
• Alibaba’s latest results were mixed: Quarterly revenue rose 8.6% year over year to $39.64 billion, slightly exceeding estimates, but EPS of $1.26 missed consensus by $0.68. Shares opened at $107.68 and remain below their 50-day and 200-day moving averages.
• AI and cloud growth offer potential but carry risks: Possible approval to purchase Nvidia chips and new international partnerships could support expansion, while increased capital spending, weak international sales, cash outflows and pending securities litigation may weigh on profitability and sentiment.

Shares of Alibaba Group Holding Limited (NYSE:BABA - Get Free Report) have earned an average rating of "Moderate Buy" from the twenty-one analysts that are currently covering the stock, Marketbeat.com reports. Five analysts have rated the stock with a hold recommendation, fourteen have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $187.05.

Several research analysts have issued reports on BABA shares. Nomura dropped their price objective on Alibaba Group from $207.00 to $178.00 and set a "buy" rating for the company in a research note on Thursday, June 25th. Sanford C. Bernstein restated an "outperform" rating and issued a $165.00 target price on shares of Alibaba Group in a research note on Monday, September 7th. Robert W. Baird lowered their target price on shares of Alibaba Group from $164.00 to $160.00 and set an "outperform" rating on the stock in a report on Friday, August 21st. Zacks Research upgraded shares of Alibaba Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Finally, Barclays lifted their price target on shares of Alibaba Group from $195.00 to $200.00 and gave the company an "overweight" rating in a report on Friday, August 21st.

Insider Activity at Alibaba Group

In other news, General Counsel Siying Yu sold 6,764 shares of the business's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $13.58, for a total value of $91,855.12. Following the transaction, the general counsel directly owned 613,965 shares of the company's stock, valued at $8,337,644.70. The trade was a 1.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Yongming Wu purchased 350,000 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were acquired at an average price of $14.24 per share, for a total transaction of $4,984,000.00. Following the completion of the transaction, the chief executive officer owned 1,364,418 shares in the company, valued at $19,429,312.32. The trade was a 34.50% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have sold 114,699 shares of company stock valued at $1,567,868. Insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Alibaba Group

Several institutional investors have recently bought and sold shares of BABA. Accredited Investors Inc. raised its stake in Alibaba Group by 2.9% in the first quarter. Accredited Investors Inc. now owns 2,858 shares of the specialty retailer's stock valued at $359,000 after purchasing an additional 80 shares in the last quarter. Calton & Associates Inc. grew its stake in Alibaba Group by 6.1% during the fourth quarter. Calton & Associates Inc. now owns 1,630 shares of the specialty retailer's stock worth $239,000 after buying an additional 93 shares in the last quarter. Mainstream Capital Management LLC grew its stake in Alibaba Group by 1.1% during the first quarter. Mainstream Capital Management LLC now owns 8,597 shares of the specialty retailer's stock worth $1,079,000 after buying an additional 93 shares in the last quarter. Blue Trust Inc. increased its holdings in Alibaba Group by 0.6% in the 1st quarter. Blue Trust Inc. now owns 16,457 shares of the specialty retailer's stock valued at $2,065,000 after buying an additional 94 shares during the period. Finally, Banque Transatlantique SA increased its holdings in Alibaba Group by 0.5% in the 4th quarter. Banque Transatlantique SA now owns 20,615 shares of the specialty retailer's stock valued at $3,022,000 after buying an additional 95 shares during the period. Institutional investors own 13.47% of the company's stock.

More Alibaba Group News

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

• Positive Sentiment: China may approve Alibaba’s purchases of Nvidia RTX PRO 5500 chips, potentially improving access to advanced processors for its cloud infrastructure and AI projects. Alibaba also expanded its AI cooperation with IT Park Uzbekistan and became an official technology and cloud partner of the Brooklyn Nets, supporting its international cloud and sports-technology ambitions. Alibaba Nears Approval for Nvidia Chip Purchases
• Neutral Sentiment: Alibaba reported a modest increase in its share count through incentive-plan issuances, creating limited potential dilution. Several insider share sales—including by the CFO and general counsel—were disclosed as tax-withholding transactions tied to vested equity awards, reducing their immediate signaling value. Alibaba Share Capital Update
• Negative Sentiment: Multiple law firms are promoting a securities-fraud class action covering investors who purchased Alibaba securities from June 26, 2025, through June 24, 2026. The notices cite allegations involving the company’s designation as a Chinese military company and statements concerning AI “distillation”; the lead-plaintiff deadline is October 5, 2026. Although the announcements largely repeat the same litigation, they increase headline and potential liability risk. Kaplan Fox Alibaba Class Action Notice
• Negative Sentiment: Analysts view accelerating AI and cloud growth as promising but warn that rising capital spending, weak international sales and cash outflows could weigh on profitability. The concerns follow Alibaba’s prior quarterly EPS miss despite revenue slightly exceeding expectations, reinforcing investor caution around execution and returns on AI investment. Alibaba Cloud and International Growth Outlook

Alibaba Group Stock Down 1.0%

Shares of BABA opened at $107.68 on Wednesday. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.21. The company has a 50-day moving average price of $117.32 and a two-hundred day moving average price of $120.85. The stock has a market cap of $267.66 billion, a price-to-earnings ratio of 26.07, a P/E/G ratio of 1.46 and a beta of 0.51. Alibaba Group has a 12 month low of $91.99 and a 12 month high of $192.67.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.94 by ($0.68). Alibaba Group had a return on equity of 4.79% and a net margin of 7.00%.The company had revenue of $39.64 billion during the quarter, compared to analyst estimates of $39.52 billion. During the same period in the previous year, the company posted $14.75 earnings per share. The company's quarterly revenue was up 8.6% on a year-over-year basis. Equities analysts predict that Alibaba Group will post 5.8 EPS for the current fiscal year.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem connecting consumers, merchants, brands and businesses through online marketplaces and related services.

The company's China commerce businesses include Taobao and Tmall, while its international commerce operations include Alibaba.com, AliExpress, Lazada and Trendyol. Alibaba also provides logistics services through Cainiao, consumer services through platforms such as Ele.me and Freshippo, and digital media and entertainment offerings.

Alibaba Cloud provides cloud computing, data management, artificial intelligence and other technology services to businesses and organizations.

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