NEW YORK (TheStreet) -- Shares of Alibaba (BABA) are falling by 0.6% to $88.30 on Thursday after the Chinese e-commerce company had its price target cut to $124 from $136 by analysts at HSBC who maintained their "buy" rating, Barron's reports.
The firm cited minor concerns about pressure on margins from its investment in strategic initiatives, like mobile internet services such as UCWeb and Autonavi, cloud services, and digital content.
Another concern is its gross mobile merchandise volume, analysts said.
HSBC also cut its revenue estimates for 2016 and 2017 by between 3% and 5%, Barron's noted.
Despite the price target decrease, Alibaba remains HSBC's top pick in e-commerce due to its dominant ecosystem and scalable business model, analysts noted.BABA data by YCharts