Citigroup Reaffirms Buy Rating on Alibaba Group Holdings, Increases Price Target to $187
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 02 2025
0mins
Should l Buy BABA?
Source: Benzinga
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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: 148.050
Low
180.00
Averages
203.09
High
230.00
Current: 148.050
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.
Alibaba Stock Declines Amidst Earnings Concerns
- Poor Stock Performance: Alibaba (BABA) closed at $144.11, down 2.66% from the previous trading session, significantly underperforming the S&P 500's 0.43% decline, indicating market concerns regarding its future performance.
- Earnings Outlook Deterioration: The upcoming earnings report is expected to show an EPS of $1.91, down 34.81% year-over-year, while revenue is projected at $41.26 billion, reflecting a 7.49% increase, highlighting the company's profitability pressures amid intensifying market competition.
- Negative Analyst Ratings: Currently, Alibaba holds a Zacks Rank of 5 (Strong Sell), with a 0.28% downward revision in EPS estimates over the last 30 days, suggesting a lack of investor confidence in its short-term outlook, which could further pressure the stock price.
- High Valuation Metrics: Alibaba's forward P/E ratio stands at 24.84, significantly above the industry average of 15.88, and its PEG ratio is 2.88, indicating that market expectations for its future growth may be overly optimistic, potentially affecting investor decisions.
See More
Contrarian Capital Reduces Stake in Core Natural Resources
- Stake Reduction Details: Contrarian Capital Management reduced its stake in Core Natural Resources by 187,676 shares in Q4 2026, resulting in a decrease to 0.7359% of the fund's 13F assets, indicating a waning market confidence in the stock.
- Financial Impact Analysis: This reduction led to a decline in the quarter-end value of Core Natural Resources by approximately $15.51 million, highlighting how both market price movements and share sales have affected the company's market performance.
- Market Performance Comparison: As of February 13, 2026, Core Natural Resources shares were priced at $91.51, reflecting an 8.03% increase over the past year, yet underperforming the S&P 500 by 3.76 percentage points, suggesting insufficient market competitiveness.
- Investor Outlook: The coal market has stabilized post-global energy shock, and Core's future earnings will depend on whether coal prices remain above production costs, making it crucial for investors to monitor this gap to assess the sustainability of the company's cash flow.
See More
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- Price Range Analysis: AVEM's 52-week low is $52.52 and high is $89.75, with the last trade at $88.50, indicating the stock is trading near its high, reflecting market optimism about its future performance.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide investors with valuable insights for technical analysis, aiding in the assessment of price trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows (new units created) or outflows (old units destroyed), allowing for an assessment of their impact on underlying assets and market trends.
See More
Oversold Stocks in Consumer Discretionary Sector Present Buying Opportunities
- Oversold Stocks Overview: According to Benzinga Pro, stocks in the consumer discretionary sector with an RSI below 30 are considered oversold, indicating potential undervaluation and presenting buying opportunities for investors seeking gains.
- Key Oversold Companies: The latest list of oversold stocks includes Genuine Parts Co (NYSE:GPC), Alibaba Group Holding Ltd (NYSE:BABA), and Papa John’s International Inc (NASDAQ:PZZA), all showing an RSI near or below 30, suggesting a possible rebound in the short term.
- RSI Indicator Interpretation: The Relative Strength Index (RSI) serves as a momentum indicator by comparing a stock's strength on up days versus down days, helping traders assess short-term performance and informing investment decisions.
- Market Opportunity Analysis: The emergence of oversold stocks in the current market environment offers investors a chance to buy quality companies at lower prices, particularly in the consumer discretionary sector, which may attract value-seeking capital inflows.
See More
Alibaba Launches Low-Cost AI Coding Platform
- AI Coding Platform Launch: Alibaba's cloud division has introduced a new AI coding platform that allows developers to access leading Chinese AI models at a low cost, enhancing the company's competitiveness in the AI software sector.
- Flexible Subscription Model: The platform enables users to switch freely between multiple models under a single subscription, priced at just 7.9 yuan (approximately $1.15) for the first month and 40 yuan thereafter, significantly lowering the barrier to entry for developers.
- In-House AI Chip Unveiled: Alibaba's T-Head chip unit has launched the Zhenwu 810E chip, designed specifically for AI training and inference, delivering performance comparable to Nvidia's H20 processor and meeting the heavy data demands of generative AI.
- Market Reaction: Despite the product launch, Alibaba's stock fell 1.32% in premarket trading on Friday, closing at $146.10, indicating a cautious market sentiment regarding its AI strategy.
See More
Burry Warns of Structural Risks in Chinese Tech Stocks
- Legal Structural Flaw: Burry highlights that nearly all major Chinese firms' securities are merely shares in offshore entities, meaning investors do not truly own the companies they believe they are betting on, creating a disconnect between operational success and legal claims to value.
- Divergence of Growth and Returns: Despite ongoing revenue growth for Chinese companies, Burry points out that the Hang Seng Index remains approximately 15% lower than its 2007 levels, indicating that stock performance does not reflect actual corporate success, which could deter foreign direct investment.
- Potential Impact of Economic Intervention: Burry warns that radical government intervention and an easy credit environment may undermine the economy, further eroding foreign investor confidence and leading to a more cautious outlook on Chinese tech stocks.
- Importance of Long-Term Perspective: He suggests that investors should conduct a deep analysis of these shell companies, focusing on their vulnerabilities and value, as traditional assessment methods may fail to capture the imminent impacts of this paradigm shift, necessitating vigilance among investors.
See More
Alibaba Stock Declines Amidst Earnings Concerns
- Poor Stock Performance: Alibaba (BABA) closed at $144.11, down 2.66% from the previous trading session, significantly underperforming the S&P 500's 0.43% decline, indicating market concerns regarding its future performance.
- Earnings Outlook Deterioration: The upcoming earnings report is expected to show an EPS of $1.91, down 34.81% year-over-year, while revenue is projected at $41.26 billion, reflecting a 7.49% increase, highlighting the company's profitability pressures amid intensifying market competition.
- Negative Analyst Ratings: Currently, Alibaba holds a Zacks Rank of 5 (Strong Sell), with a 0.28% downward revision in EPS estimates over the last 30 days, suggesting a lack of investor confidence in its short-term outlook, which could further pressure the stock price.
- High Valuation Metrics: Alibaba's forward P/E ratio stands at 24.84, significantly above the industry average of 15.88, and its PEG ratio is 2.88, indicating that market expectations for its future growth may be overly optimistic, potentially affecting investor decisions.
See More
Contrarian Capital Reduces Stake in Core Natural Resources
- Stake Reduction Details: Contrarian Capital Management reduced its stake in Core Natural Resources by 187,676 shares in Q4 2026, resulting in a decrease to 0.7359% of the fund's 13F assets, indicating a waning market confidence in the stock.
- Financial Impact Analysis: This reduction led to a decline in the quarter-end value of Core Natural Resources by approximately $15.51 million, highlighting how both market price movements and share sales have affected the company's market performance.
- Market Performance Comparison: As of February 13, 2026, Core Natural Resources shares were priced at $91.51, reflecting an 8.03% increase over the past year, yet underperforming the S&P 500 by 3.76 percentage points, suggesting insufficient market competitiveness.
- Investor Outlook: The coal market has stabilized post-global energy shock, and Core's future earnings will depend on whether coal prices remain above production costs, making it crucial for investors to monitor this gap to assess the sustainability of the company's cash flow.
See More
AVEM Stock Performance Analysis and ETF Dynamics
- Price Range Analysis: AVEM's 52-week low is $52.52 and high is $89.75, with the last trade at $88.50, indicating the stock is trading near its high, reflecting market optimism about its future performance.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide investors with valuable insights for technical analysis, aiding in the assessment of price trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on investor demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows (new units created) or outflows (old units destroyed), allowing for an assessment of their impact on underlying assets and market trends.
See More
Oversold Stocks in Consumer Discretionary Sector Present Buying Opportunities
- Oversold Stocks Overview: According to Benzinga Pro, stocks in the consumer discretionary sector with an RSI below 30 are considered oversold, indicating potential undervaluation and presenting buying opportunities for investors seeking gains.
- Key Oversold Companies: The latest list of oversold stocks includes Genuine Parts Co (NYSE:GPC), Alibaba Group Holding Ltd (NYSE:BABA), and Papa John’s International Inc (NASDAQ:PZZA), all showing an RSI near or below 30, suggesting a possible rebound in the short term.
- RSI Indicator Interpretation: The Relative Strength Index (RSI) serves as a momentum indicator by comparing a stock's strength on up days versus down days, helping traders assess short-term performance and informing investment decisions.
- Market Opportunity Analysis: The emergence of oversold stocks in the current market environment offers investors a chance to buy quality companies at lower prices, particularly in the consumer discretionary sector, which may attract value-seeking capital inflows.
See More
Alibaba Launches Low-Cost AI Coding Platform
- AI Coding Platform Launch: Alibaba's cloud division has introduced a new AI coding platform that allows developers to access leading Chinese AI models at a low cost, enhancing the company's competitiveness in the AI software sector.
- Flexible Subscription Model: The platform enables users to switch freely between multiple models under a single subscription, priced at just 7.9 yuan (approximately $1.15) for the first month and 40 yuan thereafter, significantly lowering the barrier to entry for developers.
- In-House AI Chip Unveiled: Alibaba's T-Head chip unit has launched the Zhenwu 810E chip, designed specifically for AI training and inference, delivering performance comparable to Nvidia's H20 processor and meeting the heavy data demands of generative AI.
- Market Reaction: Despite the product launch, Alibaba's stock fell 1.32% in premarket trading on Friday, closing at $146.10, indicating a cautious market sentiment regarding its AI strategy.
See More
Burry Warns of Structural Risks in Chinese Tech Stocks
- Legal Structural Flaw: Burry highlights that nearly all major Chinese firms' securities are merely shares in offshore entities, meaning investors do not truly own the companies they believe they are betting on, creating a disconnect between operational success and legal claims to value.
- Divergence of Growth and Returns: Despite ongoing revenue growth for Chinese companies, Burry points out that the Hang Seng Index remains approximately 15% lower than its 2007 levels, indicating that stock performance does not reflect actual corporate success, which could deter foreign direct investment.
- Potential Impact of Economic Intervention: Burry warns that radical government intervention and an easy credit environment may undermine the economy, further eroding foreign investor confidence and leading to a more cautious outlook on Chinese tech stocks.
- Importance of Long-Term Perspective: He suggests that investors should conduct a deep analysis of these shell companies, focusing on their vulnerabilities and value, as traditional assessment methods may fail to capture the imminent impacts of this paradigm shift, necessitating vigilance among investors.
See More
