A Shift in Sentiment: Analyst Downgrade Weighs on Alibaba Shares

Alibaba US01609W1027

Alibaba finds itself navigating a complex landscape where rapid cloud expansion meets a sluggish core commerce business and an increasingly stringent regulatory environment in China. The pressure intensified this week following a significant downgrade from a previously bullish analyst, raising a pivotal question: Is the growth in cloud computing sufficient to offset mounting concerns over e-commerce margins and costs?

Interestingly, the cautious analyst move contrasts with the actions of major institutional investors. Data from MarketBeat indicates that Gunderson Capital Management acquired 43,172 Alibaba shares in the third quarter of 2025, a position valued at approximately $7.72 million. This follows similar position increases by other heavyweight investors, including Norges Bank and UBS.