Alibaba Stock Price Target Cut Again as More Analysts Smile on Rival JD.com

Nov 25, 2021

Alibaba Stock Price Target Cut Again as More Analysts Smile on Rival JD.com

Following a year of regulatory pressure and, more recently, abysmal quarterly results, Alibaba stock has been facing a reevaluation by Wall Street.

Some financial experts have even argued that JD.com, the Chinese e-commerce behemoth's competitor, is a better buy.

Alibaba (ticker: BABA) is still dealing with the fallout from its actions. Susquehanna Investment Group's recent report is the latest illustration of this trend, with a team of analysts downgrading their outlook for Alibaba stock while upping their price target for JD.com (JD).

Analysts at the investment firm, led by Shyam Patil, cut their price target for Alibaba shares by 35% on Wednesday, from $310 to $200, but retained their Positive rating. Susquehanna's price aim is still a 46 percent increase, with the stock closing at $136.52 on Wednesday.

Alibaba's stock rose 2.2 percent on the New York Stock Exchange on Wednesday due to the Thanksgiving break. On Thursday, Alibaba's Hong Kong-listed shares (9988.HK) climbed 2.7 percent. In 2021, the stock has plummeted more than 40% and is already at its lowest level since late 2018.

The Susquehanna team added, "Alibaba has been coping with a regulatory overhang, and now China's faltering economy is placing pressure on the business in the short term."

Both investors and analysts were unimpressed by Alibaba's most recent quarterly results, prompting Patil's critique. The company missed sales and profits expectations, cut its full-year estimate, and revealed the extent to which decreasing margins had sliced profitability.

The gloomy financial forecasts added to the pressure on a company that has already been pummeled this year, much like the rest of Chinese tech.

China's internet behemoths have found themselves on the wrong side of authorities as President Xi Jinping tightens his grip on the economy, but some observers believe the worst is over.

Susquehanna, like Deutsche Bank analysts and asset management firm Needham, feels that Alibaba still has reasons to be optimistic.

"While Covid may cause a short-term economic slowdown, we continue to regard Alibaba as the China e-commerce category killer with a large secular growth opportunity and maintain our long-term-oriented bullish stance," they said.

While Patil's team cut Alibaba's price target, they upped competitor JD.com's price target by 19 percent, from $80 to $95 on Wednesday, while maintaining a Neutral rating on the firm.

On Wednesday, JD.com's U.S.-listed shares (JD) declined 0.1 percent, while its Hong Kong-listed shares (9618.H.K.) increased 0.6 percent.

The stock has a 6 percent upside potential after closing at $89.36 on Wednesday. JD.com is up 3.5 percent this year, which isn't great, but it surpasses the Hang Seng Tech Index's 25% year-to-date fall, which is also down 42 percent from its February all-time highs.

JD.com's most recent sales figures were far more positive than Alibaba's: the company recorded a 25% year-over-year growth in quarterly revenue.

Patin's team said that they "continue to appreciate JD's posture in the broad and rising Chinese e-commerce sector," and that they "see the potential for longer-term upside from scaling its advertising and logistics initiatives, and like the company's ability to effectively incubate new companies."

However, the stock faces significant risks in the future. "Economic, pandemic, and supply chain challenges will undoubtedly be headwinds soon," they said.

Subscribe Our Newsletter

Meme Stock Parade is Here. GameStop and More
Meme Stock Parade is Here. GameStop and More

Meme stocks are rising. But here is some “BUT.”

Companies
Energy Earnings Might Fall by 11%

Milena

Energy Earnings Might Fall by 11%. But Here Are Analysts’ 10 Favorite Stocks.

Exxon, Occidental, and Valero may continue to shine in 2023. A rise in oil prices would be beneficial for that.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Alexander

Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth
The Bitcoin power law may hold the key to understanding BTC’s exponential rise — explore what it is and why it matters.

discover
What Is a Gamma Squeeze?

Alexander

What Is a Gamma Squeeze, and How to Trade It?

In this article, we will explore what gamma squeeze is, describe how it happens and discuss some real-life examples.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.