Benzinga | Nov 24, 2021 12:10PM EST

Read Why Argus Downgrades Alibaba To Hold

* Argus analyst Jim Kelleher downgraded Alibaba Group Holding Ltd (NYSE:BABA) to Hold from Buy.

* The analyst notes that the company is facing lower domestic consumption spending and increased competition, which is slowing growth in its core business.

* Kelleher further states that as China government cements its power, Alibaba is vulnerable to the "deteriorating environment" for large-cap tech names in the county.

* The Hold rating is appropriate until he sees a "clearer path" to more robust sales and earnings.

* Related Content: Why This Alibaba Bull Is Taking Down The Price Target For Shares By 30%

* Price Action: BABA shares traded higher by 0.67% at $134.56 on the last check Wednesday.