Alibaba stock: buy or sell?
February 27th, 2020
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?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, Alibaba stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Alibaba stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.Unfortunately, we couldn't detect any rating for BABA stock for the last month.
Alibaba stock analysis
The Chinese giant shares fell -1.78% to $205.03 today.
The Chinese giant shares fell -1.78% to $205.03 today. Since SMA100d and SMA200d crossed up on November, BABA price climbed $4.21 per share (2.10%). On October BABA price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On January, BABA hit new all time highs, pushing higher previous ATH of $225.96 recorded on January. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of the Chinese giant ended this week at $205.03 and slipped a terrifying -3.56%. Late January BABA plummed a frightening -6.40% in just one week.
Having descending tops is not good news for investors in BABA. Although it's only a warning signal, eyes should be on alert during next weeks to identify possible new risks. Falling under its previous bottom at would confirm the downtrend path. Not so far away is the last price record Alibaba marked by mid January. Since late November 2019 when SMA20w and SMA40w crossed up, BABA price gained $18.25 per share (9.77%). Late October 2019 BABA price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
Alibaba stock price history
Alibaba stock went public on September 19th, 2014 with a price of $92.701. Since then, BABA stock surged a 121.20%, with an average of 24.20% per year. If you had invested right after BABA's IPO a $1,000 in Alibaba stock in 2014, it would worth $1,212.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Alibaba stock historical price chart
BABA stock reached all-time highs on January with a price of $231.14.
Alibaba stock price targetPredicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not found any price forecast for the e-commerce leader stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per ShareSince last May, when Alibaba published its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Alibaba annual sales rocketed an extraordinary 58.12% to $250,266.00 M dollars from $158,273.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) depreciated a -1.98% to 25.61%. Alibaba fiscal year ends in March, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Alibaba TTM sales up to were $283,346.00 and income $61,973.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem the e-commerce giant business evolution since March 2018: Annual revenues up to , compared to lastest yearly report, climbed a dazzling 13.22%. Regarding profit margin, Alibaba decreased -3.74% to 25.61%
|2013||$5,500 M||-||$1,360 M24.7%||-|
|2014||$8,580 M||56.00%||$3,810 M44.4%||180.15%|
|2015||$76,204 M||788.16%||$24,261 M31.8%||536.77%|
|2016||$101,143 M||32.73%||$71,460 M70.7%||194.55%|
|2017||$158,273 M||56.48%||$43,675 M27.6%||-38.88%|
|2018||$250,266 M||58.12%||$64,093 M25.6%||46.75%|
|TTM||$283,346 M||13.22%||$61,973 M21.9%||-3.31%|
Quarterly financial resultsAlibaba reported M in revenues for 2019-Q1, a -100.00% decline compared to previous quarter. Reported quarter earnings marked M with a profit margin of . Profit margin remained constant a 0.00% compared to previous quarter when profit margin was 28.24%. When comparing sales to same quarter last year, Alibaba sales marked a scary loss and plummed a -100.00%.
|2017-Q1||$5,600 M||-||$1,550 M27.7%||-|
|2017-Q2||$7,310 M||30.54%||$2,140 M29.3%||38.06%|
|2017-Q3||$8,285 M||13.33%||$2,655 M32.1%||24.08%|
|2017-Q4||$12,766 M||54.09%||$3,701 M29.0%||39.38%|
|2018-Q1||$61,932 M||385.15%||$7,669 M12.4%||107.20%|
|2018-Q2||$80,920 M||30.66%||$8,720 M10.8%||13.70%|
|2018-Q3||$85,148 M||5.22%||$20,133 M23.6%||130.88%|
|2018-Q4||$117,278 M||37.73%||$33,120 M28.2%||64.51%|
Alibaba ownershipWhen you are planning to invest in shares of a stock, it's worth to review its ownership structure.
Alibaba shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 33.50% of all shares.
In case of Alibaba stock, 48.12% 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.
For a better understanding, the next table shows ownership data compared to other related companies:
|Market cap||$549.5 B|
|Total shares||2,680.0 M|
|Float shares||1,760.0 M|
|- Institutional holdings (%)||48.1%|
|- Insider holdings (%)||33.5%|
|Shares in short selling||0.0%|
|Thursday, February 27th, 2020|
|Day range||$201.86 - $209.97|
|Average true range||$6.10|
|50d mov avg||$216.23|
|100d mov avg||$199.87|
|200d mov avg||$184.08|
Alibaba performanceTo measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Alibaba to :
Alibaba competitorsUnfortunately, we could not find any public company that could be defined as Alibaba competitor. This doesn't mean Alibaba does not have any competitor in the market, it's just we could not detected it.
Latest Alibaba stock news
- InvestorPlaceAlibaba Stock Is Headed Above $200August 2, 2019
- InvestorPlaceFriday’s Vital Data: Charles Schwab, Square and AlibabaAugust 2, 2019
- InvestorPlaceJD.com Has the Potential to Unseat Alibaba as ‘The Amazon of China’August 1, 2019
- InvestorPlaceAlibaba Stock Rally Still Has $15 To GoJuly 31, 2019
- InvestorPlaceIt Doesn’t Look like There’s Much That Can Stop Alibaba StockJuly 30, 2019