Shares of Alibaba Group Holding (NYSE: BABA) slid 2.4% in afternoon trading Friday, as of 1 p.m. ET, after two separate investment banks lowered their price targets on the Chinese e-commerce giant in response to a weak earnings report.
For the fiscal third quarter of 2022, Alibaba reported a 10% rise in sales yesterday, which nonetheless fell about $800 million short of analyst forecasts. Earnings were ahead of estimates -- $2.65 per share -- but right now, investors seem more concerned about the deceleration in sales growth.
As TheFly.com reports, Citigroup cut its price target on Alibaba to $200 today, citing Thursday's "mixed" results and the "weak" macro environment and consumer demand in China. Stifel Nicolaus was even harsher, cutting its price target to $135 and warning that Alibaba's "FY22 revenue growth [is going to be] toward the low end of its 20%-23% year-over-year guidance, implying Q4 growth of about 13%," reports TheFly, with continued pressure on profit margins to boot.
Source Fool.com