Alibaba Shares Plunge After Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy BABA?
Source: stocktwits
- Earnings Performance: Alibaba's Q3 revenue rose 1.7% to 284.8 billion yuan, falling short of the 289.72 billion yuan estimate, while net income plummeted 66.3% to 15.6 billion yuan, highlighting the pressure from increased spending on quick commerce and technology investments.
- Stock Price Volatility: Following the disappointing earnings report, Alibaba's shares dropped 7.1% on Thursday, marking the steepest single-day decline in over five months, although they modestly recovered by 0.9% in overnight trading, indicating ongoing market concerns.
- Divergent Analyst Reactions: Jefferies lowered its price target on BABA to $212 while maintaining a 'Buy' rating, emphasizing the company's ambitious forecast of $100 billion in AI and cloud revenue over the next five years; meanwhile, US Tiger Securities upgraded its rating to 'Buy' but reduced its target to $175, reflecting a reassessment of the stock's valuation.
- Shifting Market Sentiment: Retail investor sentiment shifted from 'neutral' to 'bearish' post-earnings, indicating growing concerns about Alibaba's future performance, despite 38 out of 42 analysts still recommending 'Buy' or higher, showcasing confidence in the company's AI growth potential.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 122.690
Low
180.00
Averages
203.09
High
230.00
Current: 122.690
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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