Mizuho Lowers Alibaba Group (NYSE:BABA) Price Target to $190.00

Key Points

• Mizuho trimmed its price target on Alibaba from $195 to $190 but kept an "outperform" rating, implying roughly a 52% upside; the analyst consensus target sits near $193.33 with a "Moderate Buy" rating.
• Cloud & AI remain the growth story—management is targeting >$100 billion in external cloud+AI revenue over five years and has raised AI/compute pricing—yet December-quarter revenue and adjusted earnings missed estimates, contributing to a recent ~7% drop in the stock (opened at $124.97).
• Major institutional investors have been adding large stakes—Northwestern Mutual and Capital World Investors bought multi‑million‑share positions and Norges Bank initiated a ~$527M holding—while hedge funds and other institutions own about 13.47% of the shares.

Alibaba Group (NYSE:BABA - Get Free Report) had its price objective lowered by equities researchers at Mizuho from $195.00 to $190.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the specialty retailer's stock. Mizuho's price target points to a potential upside of 52.03% from the stock's previous close.

A number of other equities analysts have also recently commented on the stock. Sanford C. Bernstein decreased their target price on shares of Alibaba Group from $200.00 to $190.00 and set an "outperform" rating on the stock in a research report on Wednesday, November 26th. JPMorgan Chase & Co. reduced their price objective on Alibaba Group from $240.00 to $230.00 and set an "overweight" rating on the stock in a research note on Wednesday, November 26th. Weiss Ratings downgraded Alibaba Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, February 27th. Arete Research raised Alibaba Group from a "neutral" rating to a "buy" rating and set a $190.00 target price for the company in a research note on Wednesday, January 21st. Finally, Freedom Capital lowered Alibaba Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, January 6th. Sixteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $193.33.

Alibaba Group Trading Down 7.0%

Shares of BABA opened at $124.97 on Friday. Alibaba Group has a fifty-two week low of $95.73 and a fifty-two week high of $192.67. The firm has a market cap of $298.36 billion, a price-to-earnings ratio of 17.26, a PEG ratio of 2.94 and a beta of 0.43. The firm has a 50 day moving average price of $154.57 and a 200-day moving average price of $158.41. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.46 and a current ratio of 1.46.

Institutional Investors Weigh In On Alibaba Group

Institutional investors and hedge funds have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Alibaba Group by 7,680.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock valued at $881,554,000 after buying an additional 5,936,847 shares in the last quarter. Capital World Investors increased its stake in shares of Alibaba Group by 1,074.9% in the 3rd quarter. Capital World Investors now owns 6,038,318 shares of the specialty retailer's stock worth $1,079,229,000 after acquiring an additional 5,524,354 shares in the last quarter. Norges Bank purchased a new position in Alibaba Group during the 2nd quarter valued at about $527,243,000. Alkeon Capital Management LLC bought a new stake in Alibaba Group during the second quarter worth about $184,291,000. Finally, Artisan Partners Limited Partnership bought a new stake in Alibaba Group during the third quarter worth about $290,208,000. Hedge funds and other 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: Cloud & AI growth looks powerful — Cloud Intelligence revenue rose ~36% and management is targeting >$100 billion in external cloud+AI revenue over five years, supporting a long‑term growth story for monetization. China's Alibaba Eyes $100 Billion In Cloud, AI Revenue Over Five Years
• Positive Sentiment: Qwen/AI adoption and price moves could boost revenue per user — management highlighted strong developer adoption of Qwen and Alibaba has raised AI and compute pricing (reports of increases up to ~34%), steps toward monetizing AI infrastructure. Alibaba Joins Other Tech Giants in Raising AI Prices
• Neutral Sentiment: Analysts trimmed price targets but remained constructive — Jefferies and Robert W. Baird lowered targets (still “buy/outperform”), reflecting cautious optimism: lower near‑term earnings forecasts but continued upside on AI/cloud execution. Benzinga (analyst updates)
• Neutral Sentiment: Workforce and portfolio reshaping — Alibaba’s employee count fell ~34% year‑over‑year after asset sales and restructuring; this reduces ongoing cost base but reflects major business changes. Alibaba workforce shrinks 34% in 2025 as Chinese tech giant doubles down on AI
• Negative Sentiment: Earnings and guidance disappointed — December‑quarter revenue missed estimates and adjusted earnings plunged (net income down sharply), driven by heavy spending on quick commerce and user experience; investors punished the stock on the margin and cash‑flow hit. Alibaba Targets $100 Billion of AI Revenue in Five Years (profit plunge coverage)
• Negative Sentiment: Market reaction and sector risk — AI spending narrative lost momentum across Chinese tech this week (broader sector pullback and investor concern on monetization), contributing to a multi‑percent drop in BABA shares. Alibaba, Tencent Shares Lose $66 Billion as AI Vision Falls Flat

About Alibaba Group

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.

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