Alibaba At A Crossroads: 3 Analysts Weigh In On Consumption Recovery, Cloud Strategy Shifts
Portfolio Pulse from Surbhi Jain
Alibaba Group Holding Ltd (BABA) shares fell after Q2 results and Morgan Stanley's removal of BABA as a top pick. Analysts from Morgan Stanley, Mizuho Securities, and Benchmark provided insights. Morgan Stanley's Gary Yu downgraded the price target to $110, citing uncertainties in consumption recovery and cloud strategy. Mizuho's James Lee maintained a Buy rating with a $120 target, highlighting potential catalysts but noting risks from U.S. tech bans. Benchmark's Fawne Jiang also maintained a Buy rating but lowered the target to $150, pointing to challenges in Alibaba's cloud and capital management strategies. Alibaba's stock was down 0.9% to $78.38 at the time of publication.
November 17, 2023 | 5:50 pm
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NEGATIVE IMPACT
Alibaba's stock fell after Q2 results and Morgan Stanley's downgrade. Analysts have mixed views on its recovery and cloud strategy, with price targets ranging from $110 to $150.
The downgrade by Morgan Stanley and the reduction in price targets by analysts suggest a bearish outlook in the short term, likely leading to a negative impact on Alibaba's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Morgan Stanley's analyst Gary Yu removed Alibaba from the top pick list and lowered the price target, indicating a less optimistic view on the stock.
While the news reflects Morgan Stanley's stance on Alibaba, it does not directly impact Morgan Stanley's stock. The focus is on Alibaba's performance and outlook.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50