Is Alibaba Group Stock a Good Investment?

Alibaba Group Investment Advice

  BABA
To provide specific investment advice or recommendations on Alibaba Group Holding stock, we recommend investors consider the following general factors when evaluating Alibaba Group Holding. This will help you to make an informed decision on whether to include Alibaba Group in one of your diversified portfolios:
  • 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
Cautious Hold
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.

Market Performance

WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails

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 15.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.24. 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 0.55. The entity last dividend was issued on the 13th of June 2024.
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 is unlikely to experience financial distress in the next 2 years
Latest headline from zacks.com: Top Research Reports for Qualcomm, Alibaba HSBC

Alibaba Group Quarterly Liabilities And Stockholders Equity

1.76 Trillion

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
Earnings surprises can significantly impact Alibaba Group's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Alibaba Group's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2015-05-07
2015-03-310.420.480.0614 
2016-11-02
2016-09-304.685.260.5812 
2016-05-05
2016-03-313.63.02-0.5816 
2016-01-28
2015-12-315.786.430.6511 
2016-08-11
2016-06-304.164.90.7417 
2017-01-24
2016-12-317.749.021.2816 
2023-05-18
2023-03-319.4210.711.2913 
2022-08-04
2022-06-3010.3911.681.2912 

Alibaba Group Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Alibaba target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Alibaba Group's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   44  Strong Buy
Most Alibaba analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Alibaba stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Alibaba Group Holding, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Alibaba Group Target Price Projection

Alibaba Group's current and average target prices are 74.46 and 139.24, respectively. The current price of Alibaba Group is the price at which Alibaba Group Holding is currently trading. On the other hand, Alibaba Group's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Alibaba Group Market Quote on 19th of June 2024

Low Price74.46Odds
High Price74.46Odds

74.46

Target Price

Analyst Consensus On Alibaba Group Target Price

Low Estimate126.71Odds
High Estimate154.56Odds

139.24

Historical Lowest Forecast  126.71 Target Price  139.24 Highest Forecast  154.56
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Alibaba Group Holding and the information provided on this page.

Alibaba Group Analyst Ratings

Alibaba Group's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Alibaba Group stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Alibaba Group's financials, market performance, and future outlook by experienced professionals. Alibaba Group's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Alibaba Group's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Alibaba Group is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alibaba Group Holding backward and forwards among themselves. Alibaba Group's institutional investor refers to the entity that pools money to purchase Alibaba Group's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
T. Rowe Price Associates, Inc.2024-03-31
8.4 M
Susquehanna International Group, Llp2024-03-31
7.5 M
Hsbc Holdings Plc2024-03-31
6.7 M
Bank Of Montreal2024-03-31
6.2 M
Bmo Capital Markets Corp.2024-03-31
6.2 M
H&h International Investment, Llc2024-03-31
5.8 M
Loomis, Sayles & Company Lp2024-03-31
5.1 M
Norges Bank2023-12-31
4.2 M
Lazard Asset Management Llc2024-03-31
4.1 M
Primecap Management Company2024-03-31
20.8 M
Dodge & Cox2024-03-31
18.1 M
Note, although Alibaba Group's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Alibaba Group's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 180.57 B.

Market Cap

3.12 Trillion

Alibaba Group's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.05  0.12 
Return On Capital Employed 0.09  0.24 
Return On Assets 0.05  0.12 
Return On Equity 0.08  0.26 
The company has Profit Margin (PM) of 0.09 %, 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 0.13 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.13.
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.
The data published in Alibaba Group's official financial statements typically reflect Alibaba Group's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Alibaba Group's quantitative information. For example, before you start analyzing numbers published by Alibaba accountants, it’s essential to understand Alibaba Group's liquidity, profitability, and earnings quality within the context of the Broadline Retail space in which it operates.
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.

Evaluate Alibaba Group's management efficiency

Alibaba Group Holding has return on total asset (ROA) of 0.0493 % which means that it generated a profit of $0.0493 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0638 %, meaning that it created $0.0638 on every $100 dollars invested by stockholders. Alibaba Group's management efficiency ratios could be used to measure how well Alibaba Group manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.12. The current year's Return On Capital Employed is expected to grow to 0.24. At present, Alibaba Group's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 1.1 T, whereas Non Currrent Assets Other are forecasted to decline to about 10.3 B.
Last ReportedProjected for Next Year
Book Value Per Share 391.06  1.14 
Tangible Book Value Per Share 322.62  1.03 
Enterprise Value Over EBITDA 7.35  1,767 
Price Book Value Ratio 1.36  542.13 
Enterprise Value Multiple 7.35  1,767 
Price Fair Value 1.36  542.13 
Enterprise Value1.3 T3.1 T
The analysis of Alibaba Group's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Alibaba Group's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Alibaba Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0268
Forward Dividend Yield
0.0268
Forward Dividend Rate
2
Beta
0.373

Basic technical analysis of Alibaba Stock

As of the 19th of June, Alibaba Group shows the Downside Deviation of 2.23, mean deviation of 1.55, and Risk Adjusted Performance of 0.0236. 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.

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.

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 Corporate Filings

6K
14th of June 2024
A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.
ViewVerify
13A
31st of May 2024
An amended filing to the original Schedule 13G
ViewVerify
28th of May 2024
Other Reports
ViewVerify
23rd of May 2024
Other Reports
ViewVerify
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

Far too much social signal, news, headlines, and media speculation about Alibaba Group that are available to investors today. That information is available publicly through Alibaba media outlets and privately through word of mouth or via Alibaba internal channels. However, regardless of the origin, that massive amount of Alibaba data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
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 Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Alibaba Group can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Alibaba Group Holding Historical Investor Sentiment

Investor biases related to Alibaba Group's public news can be used to forecast risks associated with an investment in Alibaba. The trend in average sentiment can be used to explain how an investor holding Alibaba can time the market purely based on public headlines and social activities around Alibaba Group Holding. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Alibaba Group's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alibaba Group and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Alibaba Group news discussions. The higher the estimate score, the more favorable the investor's outlook on Alibaba Group.

Alibaba Group Maximum Pain Price across 2024-06-21 Option Contracts

Alibaba Group's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Alibaba Group close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Alibaba Group's options.

Alibaba Group Corporate Directors

Wan MartelloIndependent DirectorProfile
TehMing KwaukIndependent DirectorProfile
Xiandong JingDirectorProfile
ChihYuan YangIndependent DirectorProfile

Additional Information and Resources on Investing in Alibaba Stock

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 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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.
Quarterly Earnings Growth
(0.85)
Dividend Share
7.221
Earnings Share
4.4
Revenue Per Share
373.072
Quarterly Revenue Growth
0.066
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.