Is Alibaba Group Stock a Good Investment?
Alibaba Group Investment Advice | BABA |
- Examine Alibaba Group's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Alibaba Group's leadership team and their track record. Good management can help Alibaba Group navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Broadline Retail space and any emerging trends that could impact Alibaba Group's business and its evolving consumer preferences.
- Compare Alibaba Group's performance and market position to its competitors. Analyze how Alibaba Group is positioned in terms of product offerings, innovation, and market share.
- Check if Alibaba Group pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Alibaba Group's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Alibaba Group Holding stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Alibaba Group Holding is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Alibaba Group Stock
Researching Alibaba Group's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.92. Some equities with similar Price to Book (P/B) outperform the market in the long run. Alibaba Group Holding has Price/Earnings To Growth (PEG) ratio of 0.9. The entity recorded earning per share (EPS) of 7.37. The firm last dividend was issued on the 12th of June 2025.
To determine if Alibaba Group is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Alibaba Group's research are outlined below:
| Alibaba Group generated a negative expected return over the last 90 days | |
| Alibaba Group has high historical volatility and very poor performance |
Alibaba Group uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Alibaba Group Holding. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Alibaba Group's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 16th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 16th of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Alibaba Group's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 279 B.Alibaba Group's profitablity analysis
The company has Profit Margin (PM) of 0.13 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.12 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.12.Determining Alibaba Group's profitability involves analyzing its financial statements and using various financial metrics to determine if Alibaba Group is a good buy. For example, gross profit margin measures Alibaba Group's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Alibaba Group's profitability and make more informed investment decisions.
Please note, the presentation of Alibaba Group's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Alibaba Group's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Alibaba Group's management manipulating its earnings.
Basic technical analysis of Alibaba Stock
As of the 19th of June, Alibaba Group shows the Mean Deviation of 2.1, standard deviation of 3.06, and Risk Adjusted Performance of (0.11). Alibaba Group Holding technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Alibaba Group's Outstanding Corporate Bonds
Alibaba Group issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Alibaba Group Holding uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Alibaba bonds can be classified according to their maturity, which is the date when Alibaba Group Holding has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| BABA 325 09 FEB 61 Corp BondUS01609WBA99 | View | |
| BABA 315 09 FEB 51 Corp BondUS01609WAZ59 | View | |
| BABA 27 09 FEB 41 Corp BondUS01609WAY84 | View | |
| BABA 2125 09 FEB 31 Corp BondUS01609WAX02 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAW29 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAV46 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAT99 | View | |
| ALIBABA GROUP HLDG Corp BondUS01609WAU62 | View |
Understand Alibaba Group's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Alibaba Group's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.50) | |||
| Mean Deviation | 2.1 | |||
| Coefficient Of Variation | (1,410) | |||
| Standard Deviation | 3.06 | |||
| Variance | 9.37 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.51) | |||
| Maximum Drawdown | 13.36 | |||
| Value At Risk | (6.23) | |||
| Potential Upside | 5.21 | |||
| Skewness | (0.78) | |||
| Kurtosis | 2.03 |
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.50) | |||
| Mean Deviation | 2.1 | |||
| Coefficient Of Variation | (1,410) | |||
| Standard Deviation | 3.06 | |||
| Variance | 9.37 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.51) | |||
| Maximum Drawdown | 13.36 | |||
| Value At Risk | (6.23) | |||
| Potential Upside | 5.21 | |||
| Skewness | (0.78) | |||
| Kurtosis | 2.03 |
Consider Alibaba Group's intraday indicators
Alibaba Group intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Alibaba Group stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Alibaba Group time-series forecasting models is one of many Alibaba Group's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Alibaba Group's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Alibaba Stock media impact
There is far too much social signal, news, headlines, and media speculation about Alibaba Group that are available to investors today. This information is accessible both publicly - through Alibaba Group's media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Alibaba-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Alibaba Group news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Alibaba Group relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Alibaba Group's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Alibaba Group alpha.
Alibaba Group Corporate Directors
| Wan Martello | Independent Director | Profile | |
| TehMing Kwauk | Independent Director | Profile | |
| Wei CPA | Executive Director | Profile | |
| Xiandong Jing | Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alibaba Group Holding. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alibaba Group. If investors know Alibaba will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alibaba Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Alibaba Group Holding is measured differently than its book value, which is the value of Alibaba that is recorded on the company's balance sheet. Investors also form their own opinion of Alibaba Group's value that differs from its market value or its book value, called intrinsic value, which is Alibaba Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alibaba Group's market value can be influenced by many factors that don't directly affect Alibaba Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Alibaba Group's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Alibaba Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alibaba Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.