Wall Street Analysts Just Trimmed Price Targets for These 5 Stocks

Page 5 of 5

01. Alibaba Group Holding Limited (NYSE:BABA)

Price Reaction after the Price Target Cut: -1.21 (-1.41%)

On October 9, Citigroup revised the price target for Alibaba Group Holding Limited (NYSE:BABA) down from $151.00 to $147.00. The stock’s current market price is $84.85, marking a 1.4% decrease. This adjustment was made within the context of the e-commerce and technology industry. Alibaba Group Holding Limited (NYSE:BABA) shares fell by 3.5% on Monday following a surprising announcement that outgoing CEO Daniel Zhang would step down from his roles as chairman and CEO of Alibaba Group Holding Limited (NYSE:BABA) and its cloud business. This move, unexpected after Zhang’s previous departure announcement in June, led to Eddie Wu taking on the interim positions of chairman and CEO for the cloud business. These leadership changes have introduced uncertainty into Alibaba Group Holding Limited (NYSE:BABA) trajectory, impacting market sentiment amid the evolving landscape of the technology and e-commerce sector.

L1 Long Short Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:

Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”

Disclosure: None. You can also take a look at 12 Best Artificial Intelligence (AI) Stocks To Buy According to Hedge Funds and 11 Best Stocks to Buy in Falling Markets According to Hedge Funds.

Page 5 of 5