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How to buy Alibaba (BABA) shares

Learn how to easily invest in Alibaba shares.

Alibaba Group Holding Limited is an internet retail business based in the US. Alibaba shares (BABA) are listed on the NYSE and all prices are listed in US Dollars. Alibaba employs 254,702 staff and has a trailing 12-month revenue of around USD$769.3 billion.

How to buy shares in Alibaba

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – BABA – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

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How has Coronavirus impacted Alibaba's stock price?

Since the stock market crash in March caused by coronavirus, Alibaba's stock price has had significant negative movement.

Its last market close was $168, which is 20.97% down on its pre-crash value of $212.59 and 1.16% down on the lowest point reached during the March crash when the stocks fell as low as $169.95.

If you had bought $1,000 worth of Alibaba stocks at the start of February 2020, those stocks would have been worth $827.03 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $787.92.

Is it a good time to buy Alibaba stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Alibaba shares at a glance

Information last updated 2021-10-15.
Latest market close$168.00
52-week range$138.43 - $319.32
50-day moving average $158.52
200-day moving average $199.13
Wall St. target price$246.26
PE ratio 20.1318
Dividend yield N/A (0%)
Earnings per share (TTM) $8.35

Alibaba stock price (NYSE: BABA)

Use our graph to track the performance of BABA stocks over time.

Alibaba price performance over time

Historical closes compared with the close of $168 from 2021-10-15

1 week (2021-10-07) N/A
1 month (2021-09-14) N/A
3 months (2021-07-16) -20.79%
6 months (2021-04-16) -29.62%
1 year (2020-10-16) -45.33%
2 years (2019-10-18) -0.67%
3 years (2018-10-18) 18.29%
5 years (2016-10-18) 62.57%

Is Alibaba under- or over-valued?

Valuing Alibaba stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Alibaba's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Alibaba's P/E ratio

Alibaba's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 20x. In other words, Alibaba shares trade at around 20x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Alibaba's PEG ratio

Alibaba's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.7096. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Alibaba's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Alibaba's EBITDA

Alibaba's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $154.2 billion.

The EBITDA is a measure of a Alibaba's overall financial performance and is widely used to measure a its profitability.

Alibaba financials

Revenue TTM $769.3 billion
Operating margin TTM 13.75%
Gross profit TTM $297.8 billion
Return on assets TTM 4.29%
Return on equity TTM 13.76%
Profit margin 19.25%
Book value $358.74
Market capitalisation $455.4 billion

TTM: trailing 12 months

Shorting Alibaba shares

There are currently 71.1 million Alibaba shares held short by investors – that's known as Alibaba's "short interest". This figure is 44.3% up from 49.3 million last month.

There are a few different ways that this level of interest in shorting Alibaba shares can be evaluated.

Alibaba's "short interest ratio" (SIR)

Alibaba's "short interest ratio" (SIR) is the quantity of Alibaba shares currently shorted divided by the average quantity of Alibaba shares traded daily (recently around 23.2 million). Alibaba's SIR currently stands at 3.07. In other words for every 100,000 Alibaba shares traded daily on the market, roughly 3070 shares are currently held short.

However Alibaba's short interest can also be evaluated against the total number of Alibaba shares, or, against the total number of tradable Alibaba shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Alibaba's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Alibaba shares in existence, roughly 30 shares are currently held short) or 0.0367% of the tradable shares (for every 100,000 tradable Alibaba shares, roughly 37 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Alibaba.

Alibaba's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Alibaba.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Alibaba's total ESG risk score

Total ESG risk: 28.21

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Alibaba's overall score of 28.21 (as at 12/31/2018) is pretty good – landing it in it in the 37th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Alibaba is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Alibaba's environmental score

Environmental score: 4.34/100

Alibaba's environmental score of 4.34 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Alibaba is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Alibaba's social score

Social score: 15.2/100

Alibaba's social score of 15.2 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Alibaba is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Alibaba's governance score

Governance score: 10.67/100

Alibaba's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Alibaba is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Alibaba's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Alibaba scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Alibaba has, for the most part, managed to keep its nose clean.

Alibaba share dividends

We're not expecting Alibaba to pay a dividend over the next 12 months.

Alibaba share price volatility

Over the last 12 months, Alibaba's shares have ranged in value from as little as $138.43 up to $319.32. A popular way to gauge a stock's volatility is its "beta".

BABA.US volatility(beta: 0.84)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Alibaba's is 0.8392. This would suggest that Alibaba's shares are less volatile than average (for this exchange).

Alibaba overview

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a social commerce platform; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alimama, a monetization platform; 1688. com and Alibaba. com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; and Tmall Global and Kaola, which are import e-commerce platforms. It also operates Lingshoutong that connects FMCG manufacturers and their distributors to small retailers; Cainiao Network logistic services platform; Ele. me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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