Alibaba Stock Retreats Amid Overheating Concerns in Chinese Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Should l Buy BABA?
Source: Benzinga
- Market Pullback: Following a strong start to 2026, Chinese stocks, including Alibaba and other tech giants like Baidu and JD.com, experienced declines in premarket trading on Tuesday due to overheating concerns, indicating cautious investor sentiment.
- Record Trading Volume: Turnover on the Shanghai and Shenzhen exchanges surged to a record 3.65 trillion yuan ($523 billion), surpassing Monday's pace, reflecting heightened market activity but also raising alarms about potential overheating.
- Alibaba's Strong Performance: Despite the broader market pullback, Alibaba's stock has risen over 106% in the past year, driven by breakthroughs in artificial intelligence and cloud computing, which have rekindled investor interest.
- Caution from Technical Indicators: The Shanghai Composite's 14-day relative strength index hit 81, signaling an overbought market, prompting caution among investors; analysts suggest that short-term pullbacks may present buying opportunities, while the overall market still shows a 2.8% gain for 2026.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BABA is 203.66 USD with a low forecast of 172.00 USD and a high forecast of 230.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 157.760
Low
172.00
Averages
203.66
High
230.00
Current: 157.760
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Infrastructure Strain: The surge in demand from the incentive campaign caused system crashes, preventing many users from accessing the campaign entry page, prompting Alibaba to urgently increase resources to ensure smooth system operations.
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