Goldman Sachs analyst Piyush Mubayi is removing Alibaba Group Holding Ltd (NYSE:BABA) from his firm's Conviction List but keeping a Buy rating on the shares with a price target of $215, down from $252, implying a 61.2% upside. 

• Alibaba has been increasing its investments on both defensive-offensive strategies amid slowing retail spending and budding competition to acquire new users, build multiple traffic sources, and in the shorter term, raise merchant subsidies to retain merchants. 

• Mubayi expects revenue growth to decelerate to 13%/16% in Q3/Q4. 

• The analyst also expects the aggressive buybacks to continue and the investment portfolio to be revisited.

• Mubayi believes the negatives have been priced. 

• Mubayi is constructive on Alibaba on its extreme valuation.

• Price Action: BABA shares traded higher by 0.16% at $133.57 in the premarket session on the last check Monday.