How to buy Alibaba shares | $261.01

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Alibaba Group Holding Limited (BABA) is a leading internet retail business based in the US. It opened the day at $260.21 after a previous close of $261.58. During the day the price has varied from a low of $255.71 to a high of $261.9. The latest price was $261.01 (25 minute delay). Alibaba is listed on the NYSE and employs 117,600 staff. All prices are listed in US Dollars.

How to buy shares in Alibaba

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: BABA in this case.
  5. Research Alibaba shares. The platform should provide the latest information available.
  6. Buy your Alibaba shares. It's that simple.

How has Coronavirus impacted Alibaba's share price?

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

Its last market close was $240, which is 11.42% up on its pre-crash value of $212.59 and 41.22% up on the lowest point reached during the March crash when the shares fell as low as $169.95.

If you had bought $1,000 worth of Alibaba shares at the start of February 2020, those shares 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 $1,125.60.

Alibaba share price

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

Alibaba shares at a glance

Information last updated 2020-07-10.
Open$260.21
High$261.9
Low$255.71
Close$261.01
Previous close$261.58
Change $-0.57
Change % -0.218%
Volume 19,964,786
Information last updated 2020-06-25.
52-week range$151.85 - $231.14
50-day moving average $212.3357
200-day moving average $208.3075
Wall St. target price$259.46
PE ratio 28.3331
Dividend yield N/A (0%)
Earnings per share (TTM) $3.497
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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund & Share Account
£11.95
£5.95
Transfer out fee
Hargreaves Lansdown is the UK's biggest wealth manager, with the depth of features you'd expect from an established platform. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
eToro is good for social trading - letting you mirror the portfolios of other traders. Capital at risk. 0% commission but other fees may apply.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
£100 or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Compare up to 4 providers

Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
£25/month
Over 2,500 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
Moneyfarm Pension
Moneyfarm Pension
0.35%-0.75%
7 funds
£1,500 (initial investment)
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
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Compare up to 4 providers

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

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 price performance over time

Historical closes compared with the last close of $261.01

1 week (2020-07-01) 20.87%
1 month (2020-06-11) 21.26%
3 months (2020-04-09) 32.92%
6 months (2020-01-10) 16.61%
1 year (2019-07-11) 56.72%
2 years (2018-07-11) 39.26%
3 years (2017-07-11) 79.01%
5 years (2015-07-10) 225.04%

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 28x. In other words, Alibaba shares trade at around 28x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

However, Alibaba's P/E ratio is best considered in relation to those of others within the internet retail industry or those of similar companies.

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 1.2055. 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.

However, it's sensible to consider Alibaba's PEG ratio in relation to those of similar companies.

Alibaba financials

Gross profit TTM $227.3 billion
Return on assets TTM 5.05%
Return on equity TTM 18.98%
Profit margin 29.32%
Book value $24.798
Market capitalisation $601.2 billion

TTM: trailing 12 months

Shorting Alibaba shares

There are currently 36.9 million Alibaba shares held short by investors – that's known as Alibaba's "short interest". This figure is 0.6% up from 36.7 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 22.3 million). Alibaba's SIR currently stands at 1.65. In other words for every 100,000 Alibaba shares traded daily on the market, roughly 1650 shares are currently held short.

To gain some more context, you can compare Alibaba's short interest ratio against those of similar companies.

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 0.01% of the outstanding shares (for every 100,000 Alibaba shares in existence, roughly 10 shares are currently held short) or 0% of the tradable shares (for every 100,000 tradable Alibaba shares, roughly 0 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.

Find out more about how you can short Alibaba stock.

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 01/01/2020) 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.).

To gain some more context, you can compare Alibaba's total ESG risk score against those of similar companies.

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.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

Alibaba Group Holding Limited was last rated for ESG on: 2020-01-01.

Total ESG score 28.21
Total ESG percentile 36.84
Environmental score 4.34
Environmental score percentile 4
Social score 15.2
Social score percentile 4
Governance score 10.67
Governance score percentile 4
Level of controversy 2

Alibaba share dividends

We're not expecting Alibaba to pay a dividend over the next 12 months. However, you can browse other dividend-paying shares in our guide.

You may also wish to consider:

Alibaba share price volatility

Over the last 12 months, Alibaba's shares have ranged in value from as little as $151.85 up to $231.14. A popular way to gauge a stock's volatility is its "beta".

BABA.US volatility(beta: 1.56)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 1.5582. This would suggest that Alibaba's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

To put Alibaba's beta into context you can compare it against those of similar companies.

Alibaba overview

Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. It operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform; Alibaba Health pharmaceutical e-commerce and consumer healthcare platforms; Alimama, a monetization platform; 1688.com, an online wholesale marketplace; Alibaba.com, an online wholesale marketplace; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Tmall Global, an import e-commerce platform. It also operates Lingshoutong, a digital sourcing platform; Cainiao Network logistic services platform; Ele.me, a delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance and display marketing services; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large scale computing, security, and management and application, big data analytics, machine learning platform, and Internet of Things and other services for enterprises; and payment and escrow services; and movies, television series, variety shows, animations, and other video content. Additionally, the company operates Youku, an online video platform; UC Browser, a mobile browser; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency app; and Tmall Genie, an AI-powered smart speaker. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.

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