Daiwa lowered the firm's price target on Alibaba to $175 from $200 and keeps a Buy rating on the shares. The firm says China's 2026 6.18 shopping festival "delivered a negative surprise." Overall gross merchandise value was up only 0.9% year-over-year versus a 15% increase in 2025, according to Syntun, the analyst tells investors in a research note. Daiwa believes the news confirms the "weak" e-commerce consumption trend in China. It sees a "tough" macro backdrop, tightening regulations, scaled-back national trade-in program and high base capping the sector's growth. As such, Daiwa downgraded China's e-commerce sector to Neutral from Positive, saying earnings cuts outweigh "undemanding" valuations.
