Alibaba Group (NYSE:BABA) Shares Down 1.8% – Here’s Why

04 Mar 2026, 22:18 by Danessa Lincoln · The Markets Daily

Alibaba Group Holding Limited (NYSE:BABA – Get Free Report) dropped 1.8% during mid-day trading on Wednesday . The company traded as low as $132.72 and last traded at $133.15. Approximately 14,018,069 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 12,422,379 shares. The stock had previously closed at $135.59.

Trending Headlines about Alibaba Group

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

Positive Sentiment: Reports say Alibaba has recruited a contributor from Google DeepMind to join its Qwen AI team, which could strengthen technical capability and signal continued investment in AI R&D. Alibaba recruits Google DeepMind contributor to join Qwen AI team, sources say
Positive Sentiment: A recent Zacks piece highlights overall Wall Street analyst optimism and upgrade activity for BABA, which can provide support under current volatility. Is Alibaba (BABA) a Buy as Wall Street Analysts Look Optimistic?
Neutral Sentiment: Alibaba reported it kept share capital stable in its Hong Kong monthly filing, reducing near-term dilution concerns for investors. Alibaba Keeps Share Capital Stable in February 2026 Hong Kong Monthly Return
Neutral Sentiment: Coverage notes Alibaba’s push into AI coding platforms and custom chips — strategic for cloud/AI revenue but could put pressure on near-term cloud margins and capex. Alibaba AI Coding Platform And Chip Put Cloud Margins In Focus
Negative Sentiment: Lin Junyang, head of Alibaba’s Qwen AI division, unexpectedly resigned days after a product launch — a direct hit to investor confidence in the unit driving future growth. Head of Alibaba’s Qwen AI division resigns
Negative Sentiment: Multiple outlets highlight leadership uncertainty in the AI push (including coverage that frames the resignation as the third senior exit in the division this year), amplifying short-term sell pressure. Alibaba’s New AI Coding Push Meets Leadership Uncertainty For Investors
Negative Sentiment: Ongoing securities litigation related to Alibaba remains on investors’ radars (a cited recovery opportunity in Broadridge’s report), representing legal/financial overhang. Two GPWR-Litigated Matters Featured in Broadridge’s 2026 Global Class Action Annual Report’s Top 10 Most Complicated Recoveries of 2025
Negative Sentiment: Reports that U.S. officials are considering caps on advanced AI chip exports to China add macro risk for Alibaba’s cloud and AI efforts, since hardware constraints could raise costs or slow product roadmaps. Trump Weighs 75,000 H200 Cap as Nvidia China Shipments Could Hit 1 Million

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Sanford C. Bernstein reduced their price objective on Alibaba Group from $200.00 to $190.00 and set an “outperform” rating for the company in a research note on Wednesday, November 26th. Jefferies Financial Group reduced their price target on shares of Alibaba Group from $231.00 to $225.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. JPMorgan Chase & Co. lowered their price objective on shares of Alibaba Group from $240.00 to $230.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 26th. Morgan Stanley dropped their price objective on shares of Alibaba Group from $200.00 to $180.00 and set an “overweight” rating on the stock in a research note on Thursday, January 8th. Finally, Loop Capital set a $140.00 target price on shares of Alibaba Group in a research note on Tuesday, January 6th. Sixteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Alibaba Group has a consensus rating of “Moderate Buy” and a consensus price target of $195.17.

Check Out Our Latest Research Report on Alibaba Group

Alibaba Group Stock Performance

The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.23. The firm has a fifty day moving average of $158.64 and a 200-day moving average of $158.00. The stock has a market capitalization of $317.88 billion, a price-to-earnings ratio of 18.39, a PEG ratio of 3.12 and a beta of 0.43.

Institutional Investors Weigh In On Alibaba Group

Several hedge funds have recently modified their holdings of BABA. Sankala Group LLC purchased a new stake in shares of Alibaba Group during the 4th quarter valued at $86,000. Banque Transatlantique SA raised its holdings in shares of Alibaba Group by 0.5% in the 4th quarter. Banque Transatlantique SA now owns 20,615 shares of the specialty retailer’s stock worth $3,022,000 after purchasing an additional 95 shares during the period. Sit Investment Associates Inc. lifted its stake in shares of Alibaba Group by 48.1% in the 4th quarter. Sit Investment Associates Inc. now owns 3,295 shares of the specialty retailer’s stock valued at $483,000 after purchasing an additional 1,070 shares in the last quarter. MidFirst Bank purchased a new stake in shares of Alibaba Group during the 4th quarter worth about $418,000. Finally, DGS Capital Management LLC raised its position in Alibaba Group by 10.2% in the fourth quarter. DGS Capital Management LLC now owns 7,785 shares of the specialty retailer’s stock valued at $1,141,000 after purchasing an additional 718 shares during the period. 13.47% of the stock is owned by institutional investors and hedge funds.

About Alibaba Group

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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.