JPMorgan analyst Alex Yao double downgraded Alibaba to Underweight from Overweight with a price target of $65, down from $180. Due to rising geopolitical and macro risks, a large number of global investors are in the process of reducing exposure to the China internet sector, leading to significant fund outflows from the sector, Yao tells investors in a research note. The analyst believes Alibaba, as one of the most widely owned stocks within the China Internet sector, will continue to face stock selling pressure in the near term. Fundamentally, Yao is also turning more cautious on the company’s near- to mid-term business outlook, citing rising inflation and “weakening consumption confidence caused by the COVID resurgence in China. He says the company’s core commerce business is under increasing pressure. “Alibaba is not only the sentiment barometer of China Internet, but also a proxy to China online consumption,” writes Yao. Alibaba in premarket trading is down 7%, or $6.21, to $80.50.