Alibaba Group Holding Stock Buy Hold or Sell Recommendation

BABA Stock  USD 73.52  0.10  0.14%   
Given the investment horizon of 90 days and your highly speculative risk level, our recommendation regarding Alibaba Group Holding is 'Strong Sell'. Macroaxis provides Alibaba Group buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BABA positions. The advice algorithm takes into account all of Alibaba Group's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Osisko Gold Ro's buy or sell advice are summarized below:
Real Value
90.03
Hype Value
73.72
Market Value
73.52
Naive Value
75.5
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Alibaba Group Holding given historical horizon and risk tolerance towards Alibaba Group. When Macroaxis issues a 'buy' or 'sell' recommendation for Alibaba Group Holding, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Alibaba Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Alibaba and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Alibaba Group Holding. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Execute Alibaba Group Buy or Sell Advice

The Alibaba recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Alibaba Group Holding. Macroaxis does not own or have any residual interests in Alibaba Group Holding or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Alibaba Group's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Alibaba GroupBuy Alibaba Group
Strong Sell

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Not AvailableDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Alibaba Group Holding has a Mean Deviation of 1.7, Semi Deviation of 2.3, Standard Deviation of 2.32, Variance of 5.36, Downside Variance of 5.68 and Semi Variance of 5.28
Macroaxis provides unbiased investment recommendation on Alibaba Group Holding that should be used to complement current analysts and expert consensus on Alibaba Group Holding. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Alibaba Group is not overpriced, please confirm all Alibaba Group Holding fundamentals, including its shares outstanding, price to earning, gross profit, as well as the relationship between the shares owned by institutions and price to sales . Given that Alibaba Group Holding has a price to earning of 112.48 X, we suggest you to validate Alibaba Group Holding market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Alibaba Group thematic classifications

Artificial Intelligence Idea
Artificial Intelligence
Firms and funds that are developing tools for artificial intelligence
Cash Cows Idea
Cash Cows
Companies that have the ability to maintain consistent cash flow over time
Hedge Favorites Idea
Hedge Favorites
Investment assets that are popular or favored by hedge funds

Alibaba Group Returns Distribution Density

The distribution of Alibaba Group's historical returns is an attempt to chart the uncertainty of Alibaba Group's future price movements. The chart of the probability distribution of Alibaba Group stock daily returns describes the distribution of returns around its average expected value. We use Alibaba Group Holding price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Alibaba Group returns is essential to provide solid investment advice for Alibaba Group.
Mean Return
0.01
Value At Risk
-3.88
Potential Upside
3.87
Standard Deviation
2.32
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Alibaba Group historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Alibaba Group Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Alibaba Group or Internet & Direct Marketing Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Alibaba Group's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Alibaba stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.11
β
Beta against NYSE Composite-0.87
σ
Overall volatility
2.32
Ir
Information ratio -0.06

Alibaba Group Volatility Alert

Alibaba Group Holding currently demonstrates below-average downside deviation. It has Information Ratio of -0.06 and Jensen Alpha of 0.11. However, we advise investors to further question Alibaba Group Holding expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alibaba Group's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alibaba Group's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Alibaba Group Fundamentals Vs Peers

Comparing Alibaba Group's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Alibaba Group's direct or indirect competition across all of the common fundamentals between Alibaba Group and the related equities. This way, we can detect undervalued stocks with similar characteristics as Alibaba Group or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Alibaba Group's fundamental indicators could also be used in its relative valuation, which is a method of valuing Alibaba Group by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Alibaba Group to competition
FundamentalsAlibaba GroupPeer Average
Return On Equity0.0821-0.31
Return On Asset0.0443-0.14
Profit Margin0.11 %(1.27) %
Operating Margin0.12 %(5.51) %
Current Valuation121.47 B16.62 B
Shares Outstanding2.5 B571.82 M
Shares Owned By Insiders0.01 %10.09 %
Shares Owned By Institutions14.16 %39.21 %
Number Of Shares Shorted47.52 M4.71 M
Price To Earning112.48 X28.72 X
Price To Book1.31 X9.51 X
Price To Sales0.20 X11.42 X
Revenue868.69 B9.43 B
Gross Profit314.36 B27.38 B
EBITDA122.39 B3.9 B
Net Income72.78 B570.98 M
Cash And Equivalents193.09 B2.7 B
Cash Per Share185.57 X5.01 X
Total Debt161.35 B5.32 B
Debt To Equity0.18 %48.70 %
Current Ratio1.77 X2.16 X
Book Value Per Share404.24 X1.93 K
Cash Flow From Operations199.75 B971.22 M
Short Ratio2.42 X4.00 X
Earnings Per Share5.39 X3.12 X
Price To Earnings To Growth0.56 X4.89 X
Target Price109.23
Number Of Employees219.26 K18.84 K
Beta0.47-0.15
Market Capitalization183.81 B19.03 B
Total Asset1.75 T29.47 B
Retained Earnings599.03 B9.33 B
Working Capital312.62 B1.48 B

Alibaba Group Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Alibaba . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Alibaba Group Buy or Sell Advice

When is the right time to buy or sell Alibaba Group Holding? Buying financial instruments such as Alibaba Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Alibaba Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Beer and Liquor Thematic Idea Now

Beer and Liquor
Beer and Liquor Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 33 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Beer and Liquor Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Alibaba Group Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Alibaba Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Alibaba Group Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Alibaba Group Holding Stock:
Check out Alibaba Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Alibaba Group Holding information on this page should be used as a complementary analysis to other Alibaba Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Complementary Tools for Alibaba Stock analysis

When running Alibaba Group's price analysis, check to measure Alibaba Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alibaba Group is operating at the current time. Most of Alibaba Group's value examination focuses on studying past and present price action to predict the probability of Alibaba Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alibaba Group's price. Additionally, you may evaluate how the addition of Alibaba Group to your portfolios can decrease your overall portfolio volatility.
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Is Alibaba Group's industry 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.
Please note, there is a significant difference between Alibaba Group's value and its price as these two are different measures arrived at by different 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.