How to Buy Alibaba Stock
Alibaba Group Holding Ltd
Alibaba is a ecommerce company located in Hong Kong, which is part of the Technology sector, and is traded under the ticker BABA on the NYSE exchange.
Alibaba stock last closed at $81.00, down 0.82% from the previous day, and has decreased 21.81% in one year. It has underperformed other stocks in the Internet Retail industry by 0 percentage points. Alibaba stock is currently +39.63% from its 52-week low of $58.01, and -35.63% from its 52-week high of $125.84.
As of Mar 20, 2023, there are 20.91B BABA shares outstanding. The market capitalization of BABA is $211.73B. In the past 24 hours, 19.52M BABA shares were traded.
How to Buy Alibaba Stock
Not sure how to invest in Alibaba stock? Here's how.
- Choose where to buy Alibaba stock: You need to choose a stock brokerage, but don't worry - we've researched dozens of online stock brokerages and apps to help you figure out where to buy Alibaba stock.
- Sign up for your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've found.
- Deposit money your investment account: Pick your payment method and add your information.
- Analyze Alibaba stock: The Alibaba ticker symbol is BABA. Is Alibaba stock a good investment? Should you buy shares of BABA? How do BABA's underlying business fundamentals look? Do top analysts think Alibaba is a good buy? Why has BABA's stock price moved recently? (Hint: Our stock analysis website can help you evaluate if BABA is a good stock to buy).
- Place your BABA trade: Decide if you will purchase BABA shares at the current market price or use a limit order to purchase BABA shares at a particular price.
- Get the latest scoop on your BABA investment: Create a watchlist to important updates regarding your position in Alibaba stock.
Step 1: Choose where to buy Alibaba stock
You need a brokerage account to access the NYSE market and buy BABA shares.
Our recommended brokerage: eToro
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Open eToro AccountStep 2: Sign up for your brokerage account
Now that you've picked your brokerage, you'll need to fill out some personal info so you can invest in BABA today.
How to Create a New Account on eToro
- Click here to get started.
- Enter your personal info to start a new brokerage account.
- Submit your application by hitting the "Create Account" button.
Step 3: Deposit money your investment account
Now that you've opened your account on the best stock trading app for beginners, your next step is to transfer the money for your investment:
Watch the walkthrough below to see the process of transferring money into your new investment account.
Step 4: Analyze Alibaba stock
After you have selected the best place to buy Alibaba stock, it's absolutely critical to research their stock before you buy, so you truly understand the risk as well as the upside.
Alibaba Numbers
Fundamentals of Alibaba
WallStreetZen was created to help part-time investors do better fundamental analysis in less time.
You can view all of the due diligence checks on BABA's stock page.
Is BABA stock overvalued?
Investors use a variety of different financial metrics, analyses, models, and charts to gauge BABA's intrinsic value.
Using relative valuations measures:
- BABA could be undervalued based on its P/E ratio of 35.95x, relative to Internet Retail industry P/E ratio of -233.82x
- BABA may be undervalued based on its P/B ratio of 1.49x, relative to Internet Retail industry P/B ratio of 4.25x
- BABA may be undervalued based on its PEG ratio of 0.65x
You can do additional valuation research on BABA's stock here.
BABA Financial Health Summary
Passed Health Checks:
- There are more short-term assets than short-term liabilities on the BABA balance sheet.
- BABA's operating cash flow of $17.54B allows it to safely service it's debt of $23.20B.
- Total BABA debt is lower than 5 years ago, relative to shareholder equity.
- BABA earnings of $8.64B is not sufficient to cover its interest payments.
- There are more short-term assets than long-term liabilities on the BABA balance sheet.
Failed Health Checks:
- BABA has a relatively high debt to equity ratio of 0.68.
- BABA profit margin has gone down from 8.7% to 4.6% in the past year.
Is it a good time to buy Alibaba stock, according to Wall Street analysts?
Out of 13 Equities analysts who research BABA, the consensus analyst rating on BABA is a Strong Buy
Please note that analyst ratings are not recommendations, nor are they investment advice.
Most Recent BABA Analyst Forecasts
Shyam Patil, a bottom 8% analyst from Susquehanna maintains BABA with a strong buy rating and lowers their BABA price target from $185.00 to $175.00, on Feb 28, 2023.
Maintaining a Strong Buy rating, Patil lowered his price target on Alibaba Group Holding Limited by 5.4% following the release of the company's Q3 2023 earnings report on 2023/02/23.
In spite of earlier weakness, trends are improving, the analyst told investors.
"Although pandemic and macro-related headwinds may continue to cause periods of softness in the near-term," Patil said he views Alibaba as the "main China e-commerce player" with a large secular growth opportunity.
For Q3 2023, Alibaba reported:
- EPS of RMB 19.26 ($2.79), which beat the Zacks Consensus Estimate of RMB 15.81 and, by 16.2%, Q3 2022’s RMB 16.87.
- Revenue of RMB 247.76B ($35.92B), which beat the Zacks Consensus Estimate of RMB 246.8B and, by 2%, Q3 2022’s RMB 242.58B.
- Repurchased $3.3B worth of shares.
Management did not provide guidance in the press release or earnings call.
CEO Daniel Zhang commented, “We delivered a solid quarter despite softer demand and supply chain and logistics disruptions due to the impact of changes in COVID-19 measures.
“Looking ahead, we expect continued recovery in consumer sentiment and economic activity. We are focused on driving growth for our customers amid the competitive landscape, and creating sustainable, long-term value for our shareholders.”
Youssef Squali, a top 12% analyst from Truist Securities maintains BABA with a strong buy rating and raises their BABA price target from $120.00 to $130.00, on Feb 24, 2023.
Jiong Shao, a top 23% analyst from Barclays maintains BABA with a strong buy rating and raises their BABA price target from $114.00 to $141.00, on Jan 11, 2023.
Alicia Yap, a top 25% analyst from Citigroup maintains BABA with a strong buy rating and raises their BABA price target from $144.00 to $160.00, on Jan 10, 2023.
Gary Yu, a top 33% analyst from Morgan Stanley maintains BABA with a strong buy rating and raises their BABA price target from $100.00 to $150.00, on Jan 9, 2023.
You can dig deeper into what analysts are projecting on the Alibaba stock forecast page.
BABA Technical Indicators
BABA Growth Numbers
Last year, BABA earnings were $5.81B. During the past 5 year, BABA's earnings have grown by -10.94% per year. This was slower than the Internet Retail industry average of 0.17%.
Last year, BABA revenue was $125.48B. In the last five year, BABA's revenue has grown by 29.32% per year. This was slower than the Internet Retail industry average of 31.02%.
You can analyze BABA's earnings and revenue performance here.
Latest Insiders Trades at BABA
Over the last year, executives and large shareholders at BABA have not bought or sold any shares.
Research more about who owns BABA shares here.
Can I rely on BABA as an income stream?
No, Alibaba doesn't provide an income stream by paying out dividends.
Get opinions from other investors
One of the reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to find out what other traders have to say.
Step 5: Place your BABA trade
There are two main order types:
- Market order: A market order is an order to buy or sell a security at the best available price.
Market orders are usually fine. - Limit order: A limit order allows you to buy or sell a stock at a specific price (or better).
If you want to be certain you're buying or selling at a particular dollar amount, place a limit order.
Press the Open button and your broker will execute the order.
If you need more info about buying stocks on eToro, click the helpful video below:
Step 6: Get the latest scoop on your BABA investment
Now that you own some BABA stock, you'll want to keep up with your new shares.
Start a watchlist to monitor your BABA stock.
BABA Feed
How to Buy Stock in Alibaba
To reiterate, here are the 6 steps you need to take to buy Alibaba stock right now:
- Choose where to buy Alibaba stock
- Sign up for your brokerage account
- Deposit money your investment account
- Analyze Alibaba stock
- Place your BABA trade
- Get the latest scoop on your BABA investment
If you require a online brokerage, eToro is our recommended venue.
Get Started with eToro TodayIf you would like to get notifications regarding your investment in Alibaba, create a watchlist on WallStreetZen today.
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