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How to buy and sell Alibaba stock (BABA)
Invest in this conglomerate armed with news, trends and market history.
Alibaba Group is a Chinese multinational e-commerce, retail, Internet, AI and technology company. Since 2015, its online sales and profits surpassed all US retailers combined. With revenue of $23.82 billion in 2017, it’s a popular choice for people who want to buy and sell its stock.
Recent stock performance of BABA
Before investing in a company like Alibaba, review its past stock prices, recent news headlines and something called the moving average convergence/divergence — or MACD. MACD is a trading indicator that uncovers the strength, momentum and duration of a trend. Remember, past performance is no guarantee of future results.
Alibaba’s technical performance
Technical analysis is the mathematical study of a stock’s price based on its recent trends. You have many more ways than the MACD to analyze market trends. Here’s what several key technical indicators are saying about Alibaba’s current stock trend, according to charting service TradingView.
Alibaba’s financial performance
Review how Alibaba has performed over the past three years.. All figures shown are in Chinese Yuan (CNY/¥).
|Year||Revenue||Operating income||Net income||Total assets||Total equity||Employees|
|2016||CN¥101.143 billion||CN¥29.102 billion||CN¥71.289 billion||CN¥364.450 billion||CN¥249.539 billion||34,985|
|2017||CN¥158.273 billion||CN¥48.055 billion||CN¥41.226 billion||CN¥506.812 billion||CN¥321.129 billion||50,092|
|2018||CN¥250.266 billion||CN¥69.314 billion||CN¥61.412 billion||CN¥717.124 billion||CN¥436.438 billion||66,421|
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How to stay up to date with Alibaba stock
When buying or selling stock in a company, pay attention to its current affairs by monitoring elements like:
- Financial reporting. Know when a company typically releases its financial reports. These reports can let you know how the company is performing, which affects the stock price. Alibaba reports annually on March 31st as well as quarterly.
- Company news. Keep an eye on the news. New releases, new countries or markets and hiring and firing staff can all affect a company’s stock.
- Wider news. Be aware of external events and news that can affect Alibaba’s share price — for instance, news about their competitors.
- Does the company pay dividends? If a company pays dividends, they pay some of their profits back to shareholders. Currently, Alibaba does not pay dividends on their shares.
- Shareholder meetings. Often held annually, these meetings invite large shareholders to attend and vote on matters relating to the company, pushing the direction of the company.
Things to consider before investing
Before investing in any company, know the answers to key questions like:
- What does the company do? If you can’t explain what the company does in a few sentences, do some research before investing.
- Is it making profits? If you’re not sure if a company is profitable, it could be a red flag. You can read Alibaba’s quarterly or annual earnings reports and look at the figures for yourself.
- Who are the main competitors? Know if the company is a market leader, a newcomer or a fast-growing disrupter. If the company you’re considering operates globally, keep an eye on foreign competition as well.
- Who runs the company? It’s easy to track down who runs a company, and any decent company lists its senior managers, too. Knowing the leaders can tell you something about the company’s stability and management style.
- Is the company’s position sustainable? If you’re looking for a long-term investment, you need to evaluate the likelihood of the company sticking around. If you’re looking for a short-term gain, this is less important.
- Is there room for future growth? Look at the company’s outlook for medium- to long-term growth to determine whether it’s reached its maximum size or has room to grow.
No company is infallible — not even one that makes over double the GDP of Liechtenstein. Before buying or selling stock in Alibaba, do your research and make sure you’re comfortable with the risks.
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