Sumary of Alibaba Stock Price Target Cut Again as More Analysts Smile on Rival JD.com:
- Alibaba, like its peers in Chinese tech, has been under pressure for much of this year.
- David Becker/Getty Images After a year of regulatory pressure and, more recently, disappointing quarterly earnings, Alibaba stock has been undergoing a reevaluation by Wall Street.
- Some financial analysts have even been making the case that the Chinese e-commerce giant’s competitor, JD.
- Analysts led by Shyam Patil at the investment group cut their price target on Alibaba stock by 35% Wednesday—from $310 to $200—but maintained their Positive rating.
- The stock is near its lowest point since late 2018, and has declined more than 40% in 2021. “Alibaba has been dealing with a regulatory overhang, and now the slowing macro in China is pressuring the business in the near-term,” the team at Susquehanna said.
- The gloomy financial results added pressure to a stock that has already been beaten down this year, along with much of the rest of Chinese tech.
- China’s internet giants have found themselves on the wrong side of regulators as President Xi Jinping tightens his control over the economy, though some experts now believe the worst is over.
- “Although Covid may continue to cause periods of softness in the near-term macro, we continue to view Alibaba as the China e-commerce category killer with a large secular growth opportunity and maintain our long-term-oriented positive view,” they added.