Alibaba Gets Rare Wall Street Downgrade as Rival Gains Traction

  • Morgan Stanley cut rating on Alibaba’s ADRs to equal-weight
  • Rival PDD reaches $196 billion market cap, surpassing Alibaba
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Alibaba Group Holding Ltd. received a rare downgrade from Wall Street on the same day it lost its crown as China’s most valuable e-commerce firm to one of its main rivals.

Morgan Stanley cut its rating on Alibaba’s American depositary receipts to equal-weight from overweight, lowering its price target to $90 from $110. That’s the first downgrade on the company’s US-listed shares since late June, according to data compiled by Bloomberg.