Alibaba stock: buy or sell?

BABA stock price: $171.91 -1.90% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

3

Shares of the company founded by Jack Ma dropped a tragic -1.90% and closed at $171.91. With Thursday it's been 3 sliding days in a row, loosing $-6.37 (-3.65%).

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally.

Should I buy Alibaba stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Alibaba stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Alibaba stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for BABA stock in the last 30 days.

The general sentiment of these ratings is bullish for BABA stock, with 13 positive ratings.
Is BABA a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-5Jefferies Financial Groupn/aBuy
2019-8-16Stifel Nicolausn/aBuy
2019-8-16KeyCorpn/aOverweight
2019-8-15SunTrust BanksBuyPositive
2019-5-7KeyCorpOverweightOverweight
2019-5-20Barclaysn/aOverweight
2019-5-16Raymond Jamesn/aStrong-Buy
2019-5-15SunTrust Banksn/aBuy
2019-4-15Barclaysn/aOverweight
2019-3-29Robert W. BairdOutperformOutperform
2019-3-26Morgan Stanleyn/aBuy
2019-2-1Argusn/aBuy
2019-1-31SunTrust Banksn/aBuy
2019-1-31Stifel NicolausBuyBuy
2019-1-31NomuraBuyBuy

Alibaba stock analysis

Daily outlook

The company founded by Jack Ma dropped a tragic -1.90% and closed at $171.91.

The Chinese e-commerce giant shares dropped -1.90% to $171.91 yesterday. Since last Aug/15 when BABA stock price broke up the SMA200d line, it gained $9.85 (6.08%). Since SMA100d and SMA200d crossed up on April, BABA price slid a -8.04%.

BABA stock chart (daily)

Weekly outlook

After boosting an amazing 8.87% in a week last week, the Chinese e-commerce giant closed this week at $171.91 and declined a disappointing -1.54%. Late July BABA collapsed a chilling -11.02% in just one week.

Since price and SMA40w lines crossed up last week, BABA climbed $12.79 (8.04%). Since early April when SMA20w and SMA40w crossed up, BABA price slipped $-13.44 per share (-7.25%).

BABA stock chart (weekly)

Alibaba stock price history

Alibaba stock went public on September 19th, 2014 with a price of $92.701. Since then, BABA stock grew a 85.40%, with a yearly average of 21.40%. If you had invested $1,000 in Alibaba stock in 2014, it would worth $854.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Alibaba stock historical price chart

BABA stock reached 52-week highs on May at $195.72, and all-time highs 2018-06-05 with a price of 211.7.

Alibaba stock price target is $216.90

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' BABA stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 14 price predictions for BABA stock:
BABA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-5Jefferies Financial GroupInitiatesn/a$216.00-
2019-8-16Stifel NicolausRaises Target$220.00$225.002.3%
2019-8-16KeyCorpRaises Target$240.00$245.002.1%
2019-8-15SunTrust BanksReiterates$205.00$210.002.4%
2019-5-7KeyCorpReiterates$210.00$240.0014.3%
2019-5-20BarclaysRaises Target$220.00$225.002.3%
2019-5-16Raymond JamesLowers Target$285.00$280.00-1.8%
2019-5-15SunTrust BanksReiteratesn/a$200.00-
2019-4-15BarclaysRaises Target$200.00$220.0010%
2019-3-29Robert W. BairdRaises Target$178.00$195.009.6%
2019-3-26Morgan StanleySet Price Targetn/a$196.00-
2019-1-31SunTrust BanksRaises Targetn/a$200.00-
2019-1-31Stifel NicolausReiterates$175.00$180.002.9%
2019-1-31NomuraReiterates$200.00$205.002.5%
(in average)$213.30$216.902.0%
Moving in a range from $280.00 and $180.00, the price forecast for BABA stock is $216.90.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since May, when Alibaba published its last earnings report, it eased an awful -9.19%. Unfortunately, reported EPS is not yet available in our database.
BABA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a4.71n/a
2017-Q2-n/a5.65n/a
2017-Q32017-11-021.081.3525.0%
2017-Q42018-02-011.671.680.6%
2018-Q12018-05-040.650.54-16.9%
2018-Q22018-08-230.740.66-10.8%
2018-Q32018-11-020.821.0123.2%
2018-Q42019-01-301.361.392.2%
2019-Q12019-05-020.97n/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an outstanding growth of 58.12% to $250,266.00 million USD. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) declined a -1.98% to 25.61%.

To have an up to date view of the financial situation of Alibaba, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Alibaba TTM sales up to were $283,346.00 and income was $61,973.00 million USD. When comparing this TTM figures with the last reported annuality, we can review the e-commerce giant business evolution since March 2018: Annual revenues up to , compared to lastest yearly report, rocketed an extraordinary 13.22%. Regarding profit margin, Alibaba decreased -3.74% to 25.61%

BABA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$5,500 M-$1,360 M24.7%-
2014$8,580 M56.00%$3,810 M44.4%180.15%
2015$76,204 M788.16%$24,261 M31.8%536.77%
2016$101,143 M32.73%$71,460 M70.7%194.55%
2017$158,273 M56.48%$43,675 M27.6%-38.88%
2018$250,266 M58.12%$64,093 M25.6%46.75%
TTM $283,346 M13.22%$61,973 M21.9%-3.31%

Quarterly financial results

Alibaba posted million in sales for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin remained steady a 0.00% compared to previous quarter when profit margin was 28.24%. When comparing revenues to same quarter last year, Alibaba sales marked a scary loss and plummed a -100.00%.
BABA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$5,600 M-$1,550 M27.7%-
2017-Q2$7,310 M30.54%$2,140 M29.3%38.06%
2017-Q3$8,285 M13.33%$2,655 M32.1%24.08%
2017-Q4$12,766 M54.09%$3,701 M29.0%39.38%
2018-Q1$61,932 M385.15%$7,669 M12.4%107.20%
2018-Q2$80,920 M30.66%$8,720 M10.8%13.70%
2018-Q3$85,148 M5.22%$20,133 M23.6%130.88%
2018-Q4$117,278 M37.73%$33,120 M28.2%64.51%

Alibaba ownership

When you are planning to invest in a stock, it's always worth to check its ownership structure.

Alibaba shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 48.49% of all shares.

In case of Alibaba stock, 42.09% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for BABA stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Alibaba:

BABAAMZNEBAYOSTK
Market cap$447.0 B$888.4 B$34.9 B$302.6 M
Total shares2,600.0 M492.1 M871.5 M14.3 M
Float shares1,500.0 M436.0 M790.0 M28.4 M
  - Institutional holdings (%)42.1%57.1%88.0%69.3%
  - Insider holdings (%)48.5%16.1%5.3%24.4%
Shares in short selling0.0%0.0%0.0%0.0%

Alibaba summary

Thursday, August 22nd, 2019
Open$174.10
Close$171.91
Day range$170.50 - $174.96
Previous close$175.24
Session gain-1.90%
Average true range$5.62
50d mov avg$169.08
100d mov avg$171.58
200d mov avg$166.15
Daily patternlt02a
Weekly pattern lb11a

Alibaba performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Alibaba, the comparison is made against Amazon.com, eBay and Overstock.com.
Stock3m6m12m
BABAAlibaba10.91%-2.83%-1.33%
AMZNAmazon.com-0.97%10.67%-5.24%
EBAYeBay11.14%7.50%16.72%
OSTKOverstock.com97.94%6.18%-31.09%

Alibaba competitors

We chose a few stocks to conform a list of Alibaba competitors to examine if you are interested in investing in BABA:

Latest Alibaba stock news