Shares of Alibaba Group Holding Ltd (NYSE:BABA) dropped on Wednesday after a number of analysts chimed in with their takes on the internet giant. Several have slashed their price targets for the company.
Investor’s Business Daily has the details.
Several Wall Street analysts cut their price targets on Alibaba (BABA) stock Wednesday, based on concerns about e-commerce sales trending below expectations and the impact of aggressive investments on profit margins.
Alibaba stock closed at 138.29, down 5.9%, on the stock market today. Shares now trade near a 15-month low. Alibaba stock has dropped 34% since hitting a record high of 211.70 on June 5 amid an escalating trade war between the U.S. and China. There also are signs of slowing economic growth in its home market.
Raymond James analyst Aaron Kessler is maintaining a strong buy rating on Alibaba, but he’s among those who have cut price targets, dropping his from $280 to $260.
“While Alibaba could potentially hit its FY19 guidance, we believe this requires a significant ramp in second-half monetization efforts,” he wrote. “Alibaba is still rolling out the new interface for Taobao which may delay monetization improvements.”
Alibaba Group Holding Ltd shares fell $3.47 (-2.51%) in premarket trading Thursday. Year-to-date, BABA has declined -19.80%, versus a 5.65% rise in the benchmark S&P 500 index during the same period.