Erste Group Bank Raises Earnings Estimates for Alibaba Group

Key Points

• Erste Group Bank raised Alibaba’s FY2027 EPS estimate to $5.92 from $5.82, above the current consensus of $5.74, and projected FY2028 EPS of $8.45.
• Alibaba’s latest quarter showed 8.6% year-over-year revenue growth to $39.64 billion, but EPS of $1.26 missed estimates by $0.68. Profitability remained modest, with a 4.79% return on equity and a 7.00% net margin.
• Shares opened at $101.72, down 2.6%, while analysts maintained an overall “Moderate Buy” consensus with a $182.89 average price target; institutional investors own 13.47% of the stock, and insiders have recently sold shares primarily to cover tax obligations.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Stock 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 Wednesday, October 21st. Erste Group Bank analyst S. Lingnau now expects that the specialty retailer will post earnings per share of $5.92 for the year, up from their prior forecast of $5.82. The consensus estimate for Alibaba Group's current full-year earnings is $5.74 per share. Erste Group Bank also issued estimates for Alibaba Group's FY2028 earnings at $8.45 EPS.

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 for the quarter, compared to the consensus estimate of $39.52 billion. During the same quarter last year, the business posted $14.75 EPS. Alibaba Group's quarterly revenue was up 8.6% on a year-over-year basis.

Other research analysts have also recently issued research reports about the stock. Citigroup increased their target price on shares of Alibaba Group from $190.00 to $193.00 and gave the stock a "buy" rating in a report on Thursday, October 8th. Weiss Ratings upgraded shares of Alibaba Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, October 2nd. Piper Sandler cut shares of Alibaba Group to a "hold" rating in a research report on Thursday, October 8th. Robert W. Baird reduced their price objective on shares of Alibaba Group from $164.00 to $160.00 and set an "outperform" rating for the company in a research note on Friday, August 21st. Finally, HSBC set a $170.00 price objective on Alibaba Group in a report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $182.89.

Alibaba Group Stock Down 2.6%

Shares of BABA stock opened at $101.72 on Friday. Alibaba Group has a 12-month low of $91.99 and a 12-month high of $182.50. 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 firm has a fifty day moving average of $112.67 and a 200-day moving average of $118.54. The company has a market capitalization of $253.05 billion, a price-to-earnings ratio of 24.63, a P/E/G ratio of 1.36 and a beta of 0.47.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Aureus Asset Management LLC grew its holdings in shares of Alibaba Group by 511.0% during the first quarter. Aureus Asset Management LLC now owns 9,361 shares of the specialty retailer's stock worth $1,174,000 after purchasing an additional 7,829 shares during the last quarter. IPG Investment Advisors LLC boosted its position in Alibaba Group by 97.8% during the 2nd quarter. IPG Investment Advisors LLC now owns 17,019 shares of the specialty retailer's stock worth $1,647,000 after buying an additional 8,415 shares during the period. Teachers Retirement System of The State of Kentucky boosted its position in Alibaba Group by 24.5% during the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer's stock worth $32,567,000 after buying an additional 51,000 shares during the period. Turn8 Private Wealth Inc. boosted its position in Alibaba Group by 70.3% during the 1st quarter. Turn8 Private Wealth Inc. now owns 37,324 shares of the specialty retailer's stock worth $4,683,000 after buying an additional 15,404 shares during the period. Finally, Jennison Associates LLC grew its holdings in Alibaba Group by 54.2% during the 1st quarter. Jennison Associates LLC now owns 83,627 shares of the specialty retailer's stock worth $10,492,000 after acquiring an additional 29,392 shares during the last quarter. 13.47% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, General Counsel Siying Yu sold 6,764 shares of Alibaba Group stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $13.58, for a total transaction of $91,855.12. Following the sale, the general counsel directly owned 613,965 shares of the company's stock, valued at approximately $8,337,644.70. The trade was a 1.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Hong Xu sold 103,046 shares of the company's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $13.68, for a total transaction of $1,409,669.28. Following the transaction, the chief financial officer owned 406,450 shares of the company's stock, valued at approximately $5,560,236. This represents a 20.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 999,971 shares of company stock valued at $13,563,304 in the last ninety days. Insiders own 12.50% of the company's stock.

Trending Headlines about Alibaba Group

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

• Positive Sentiment: Alibaba contributed OpenSandbox to the Agentic AI Foundation, joining projects from Anthropic, OpenAI, and Hugging Face. The initiative supports Alibaba’s positioning in open-source AI infrastructure, although the near-term financial impact is uncertain. Agentic AI Foundation Announces Four New Projects
• Neutral Sentiment: Reports that Alibaba, Tencent, and ByteDance placed substantial orders for export-compliant Nvidia chips highlight strong demand for AI infrastructure, but also reinforce investor concerns about capital spending, cash burn, and pressure on near-term margins. ByteDance, Alibaba and Tencent Just Ordered $35 Billion of Nvidia Chips
• Negative Sentiment: Chinese market regulators summoned Alibaba and other e-commerce operators, calling for tighter product-quality controls and stronger consumer protections. Investors viewed the move as renewed regulatory pressure on Alibaba’s core commerce business, limiting the extent to which its AI strategy can offset operating risks. Alibaba Shares Post Steepest Drop in Two Months on China Curbs
• Negative Sentiment: Alibaba underperformed as Chinese and Hong Kong technology stocks broadly sold off. Investors are questioning whether heavy cloud and AI spending will generate sufficient returns, while weaker sentiment toward China’s consumer economy added pressure. Alibaba Slides as China Tech Weakness and AI Spending Concerns Weigh on Shares

About Alibaba Group

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

The company's China commerce businesses include Taobao, a consumer-focused marketplace, and Tmall, which enables brands and retailers to sell directly to consumers. Alibaba also operates 1688, a business-to-business wholesale marketplace.

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