Investing

Top Wall Street Analysts Still Slashing Price Targets on Red-Hot Tech Stocks

Alibaba

China-based e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) has seen its share price plummet by 57% over the past 12 months. Shares traded up 2.4% Monday morning, but the stock still suffers from uncertainty over China’s economy. There is no firm date for the company to release its 2022 fiscal fourth-quarter results, but next Thursday, May 13, may be the best bet. Consensus estimates are calling for revenue to be down 20.7% sequentially and up year over year by a third. EPS are expected to soar 240% sequentially and by 22.4% year over year.

James Lee of Mizuho maintained a Buy rating on the stock but lowered the price target from $180 to $160 (12.5%), citing uncertainty caused by the COVID-19 disruptions to consumer spending and business activity. Alibaba will not be the only internet company to feel the pinch, and as long as the Chinese government insists on its zero-COVID policies, economic recovery remains out of reach.

Alibaba’s stock traded up by about 1.9% Monday, at $98.95 in a 52-week range of $73.28 to $236.17. Since reaching the 52-week high in early May of last year, the company’s consensus price target has dipped from a high of around $320 to a current average of $158.91.

Baidu

Shares of China’s largest internet search engine, Baidu Inc. (NASDAQ: BIDU) have dropped nearly 41% of their value over the past 12 months. Like Alibaba, the company’s 52-week high was posted a year ago, and the company has not announced its released date for earnings, although next Wednesday remains the favorite. Consensus estimates call for a sequential drop of 19.1% in revenue and an EPS jump of 270.4%. Year over year, revenue is touted to dip by 1.9% while EPS is expected to drop by 55%.

Mizuho’s Lee has kept a Buy rating on the stock but lowered the $300 price target to $285 (down 5%). All the reasons he gave for cutting Alibaba’s price target also apply to Baidu.


The company’s stock traded up by about 0.5% Monday, at $124.78 in a 52-week range of $102.18 to $214.42. Since reaching the 52-week high in early May of last year, the company’s consensus price target has dipped from a high of around $343 to a current average of $203.23.

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