A clear divergence in strategy is emerging among major financial institutions regarding Chinese e-commerce leader Alibaba. Recent portfolio disclosures reveal a stark contrast, with some firms executing substantial sell-offs while others are aggressively increasing their stakes, creating a tug-of-war over the tech giant’s prospects.
Significant Position Reductions
Several investment advisors have dramatically scaled back their exposure to Alibaba. The most notable reduction came from DJE Kapital AG, which slashed its holdings by a substantial 71.6% during the second quarter. This strategic move involved the disposal of 443,866 shares, representing a major withdrawal from the position.
Similarly, HC Advisors LLC implemented a significant reduction, cutting its stake by 57.7%. Such substantial position decreases typically indicate either profit-taking following substantial share price appreciation or diminishing confidence in the near-term outlook for the e-commerce and cloud computing conglomerate.
Countervailing Investment Flows
Contrasting with the selling pressure, a cohort of institutional investors is demonstrating conviction by expanding their Alibaba positions. Several firms have reported increasing their holdings during the same period:
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- RWA Wealth Partners LLC boosted its investment by 16.0%
- Rathbones Group PLC raised its stake by 14.6%
- Aviva PLC expanded its position by 3.2%
This opposing movement highlights a deep division within the institutional investment community regarding Alibaba’s trajectory. While some perceive elevated risk and opt to realize gains, others appear to identify a compelling entry opportunity at current valuation levels.
Analyst Sentiment Remains Favorable
Despite the mixed signals from institutional trading activity, professional analyst consensus maintains a positive outlook. Market researchers have issued seventeen “Buy” recommendations compared to just a single “Sell” rating, resulting in a consensus “Moderate Buy” assessment. The average price target among covering analysts continues to suggest additional upside potential for the shares.
With a market capitalization of approximately $396 billion, Alibaba remains a dominant force within the global technology sector. The fundamental question facing investors is which group of institutions has correctly interpreted the company’s future direction—those building positions or those liquidating them.
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