How to Buy Alibaba Stock
Alibaba Group Holding Ltd
Alibaba is a internet retail company located in Hong Kong, which is part of the Consumer Cyclical sector, and is traded under the ticker BABA on the NYSE exchange.
Alibaba stock last closed at $68.88, up 0.09% from the previous day, and has decreased 27.87% in one year. It has underperformed other stocks in the Internet Retail industry by 0.29 percentage points. Alibaba stock is currently +3.38% from its 52-week low of $66.63, and -32.8% from its 52-week high of $102.50.
As of Apr 18, 2024, there are 20.14B BABA shares outstanding. The market capitalization of BABA is $173.39B. In the past 24 hours, 8.77M 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.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Enter your personal info to start a new brokerage account.
- Submit your application by hitting the "Create Account" button. Get started with eToro today
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 12.62x, relative to Internet Retail industry P/E ratio of 54.23x
- BABA may be undervalued based on its P/B ratio of 1.23x, relative to Internet Retail industry P/B ratio of 5.66x
- BABA may be undervalued based on its PEG ratio of 0.41x
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 $26.55B allows it to safely service it's debt of $23.11B.
- Total BABA debt is lower than 5 years ago, relative to shareholder equity.
- BABA earnings of $17.88B is not sufficient to cover its interest payments.
- There are more short-term assets than long-term liabilities on the BABA balance sheet.
- BABA profit margin has gone up from 3.8% to 10.8% in the past year.
Failed Health Checks:
- BABA has a relatively high debt to equity ratio of 0.67.
Is it a good time to buy Alibaba stock, according to Wall Street analysts?
Out of 12 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
Ronald Keung, a bottom 6% analyst from Goldman Sachs maintains BABA with a strong buy rating and lowers their BABA price target from $121.00 to $105.00, on Feb 8, 2024.
Shyam Patil, a top 19% analyst from Susquehanna maintains BABA with a strong buy rating and lowers their BABA price target from $150.00 to $135.00, on Feb 8, 2024.
Susquehanna's Shyam Patil lowered their price target on Alibaba (NYSE: BABA) by 10% from $150 to $135 on 2024/02/08. The analyst maintained their Strong Buy rating on the stock.
Post Alibaba's Q3 2024 earnings report, released on 2024/02/07, Patil described the print as "satisfactory."
The analyst noted that management is "keen on boosting" investment levels and focusing on top-line growth, particularly in its core businesses.
Earnings Report
For Q3 2024, Alibaba reported:
- EPS of $2.67, which missed the Zacks Consensus Estimate of $2.73 and by 2% Y/Y.
- Revenue of $36.67B, which missed the Zacks Consensus Estimate of $37.21B but was up 5% Y/Y.
Management did not provide financial guidance in its press release or earnings call.
CEO Eddie Wu commented: “We delivered a solid quarter as we are executing our focused strategies across the organization.
“Our top priority is to reignite the growth of our core businesses, e-commerce and cloud computing.
“We will step up investment to improve users’ core experiences to drive growth in the Taobao and Tmall Group and strengthen market leadership in the coming year. We will also focus our resources on developing public cloud products and sustaining the strong growth momentum in our international commerce business.”
CFO Toby Xu commented: “Alibaba Group delivered a healthy quarter with revenue growth of 5% Y/Y.
“We increased our investment in strategic priorities and improved shareholder return by leveraging our strong balance sheet and cash flow.
“Our board of directors approved an increase of $25B to our share repurchase program, demonstrating our confidence in the outlook of our business and cash flow.
“Our consistent share repurchase has also reduced outstanding share count while achieving EPS and cash flow per share accretion.”
Ellie Jiang, a top 40% analyst from Macquarie downgrades BABA to a hold rating and announces their BABA price target of $85.40, on Feb 8, 2024.
Colin Sebastian, a top 4% analyst from Baird maintains BABA with a buy rating and lowers their BABA price target from $95.00 to $90.00, on Jan 19, 2024.
Jiong Shao, a top 23% analyst from Barclays maintains BABA with a strong buy rating and lowers their BABA price target from $138.00 to $109.00, on Jan 12, 2024.
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 $13.93B. During the past 5 year, BABA's earnings have grown by 7.32% per year. This was slower than the Internet Retail industry average of 35.49%.
Last year, BABA revenue was $129.18B. In the last five year, BABA's revenue has grown by 21.23% per year. This was slower than the Internet Retail industry average of 26.13%.
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?
Alibaba pays a dividend of 1.45%, compared to the Internet Retail industry's average dividend yield of 4.28%. If you owned $1,000 of BABA stock, you would have been paid $14.52 in the past year.
Dig into more info about Alibaba dividend yield and history here.
Get opinions from other investors
One of the biggest reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to find out what other investors have to say.
Step 5: Place your BABA trade
You have two main types of orders:
- Market order: A market order is an order to buy or sell a stock at the best price on the market.
Market orders are generally fine for most investors. - Limit order: A limit order allows you to buy or sell a security at a specific price (or better).
If you want to be certain you're buying or selling at an exact price, place a limit order.
Click the Open Trade button and eToro will execute your order.
If you want additional help with buying stocks on eToro, watch the how to video below:
Step 6: Get the latest scoop on your BABA investment
Now that you own some shares in BABA, you'll want to stay up-to-date on your new shares.
Add BABA to a watchlist to get alerted to the latest events about your BABA stock.
BABA Feed
How to Buy Stock in Alibaba
To summarize, here are the 6 steps to buy Alibaba stock:
- 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 want to keep tabs on your new investment in Alibaba, add BABA to your watchlist below.
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