Alibaba Group Holding Ltd (BABA) Shares Tumble on China Woes


Shares of Alibaba Group Holding Ltd (NYSE:BABA) are trading down more than 6% today following an impressive end to 2015. The stock, which is down on above-average volume this afternoon, is seemingly being hurt by the large drop in the Chinese market earlier in the day.

While the vast majority of tech stocks are down substantially today on a general market selloff, Alibaba Group Holding Ltd (NYSE:BABA) seems to be facing the brunt of the storm. The stock is trading at its lowest levels in over two months, and the PE ratio of the company is now hovering around 20. This is incredibly low compared to a similar company like Amazon and who trades at a PE north of 900. With that said, investors are likely taking some profits off the table today, as a new tax year is now upon us. The stock is down 6.90% or $5.61 following the news, hitting $75.66 per share. Approximately 14.25 million shares traded hands. BABA shares have declined 9.01% since May 29, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.00%.

From a total of 23 analysts covering Alibaba (NYSE:BABA) stock, 21 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 91% of the ratings are positive. The highest target price is $137 while the lowest target price is $80. The mean of all analyst targets is $93.92 which is 24.13% above today’s ($75.66) stock price. Alibaba was the topic of 50 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on October 30 with a “Buy” rating. Axiom Capital maintained shares with a”Buy” rating and a $92 target share price in their report from an October 28. Oppenheimer maintained BABA stock in a recent report from October 28 with a “Outperform” rating. Brean Capital maintained the rating on October 28. Brean Capital has a “Buy” rating and a $98 price target on shares. Finally, Wedbush maintained the stock with a “Neutral” rating in a report they issued on an October 28.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $203.92 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 20.3 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.