Alibaba stock: buy or sell?

BABA stock price: $182.51 1.14% At close on September 20th, 2019

Updated on:
September 20th, 2019

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The company founded by Jack Ma shares stepped up 1.14% to $182.51 yesterday. Friday was the 4th green session in a row, soaring 3.04%.

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?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Alibaba stock situation right now, therefore 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 collected 15 ratings published for BABA stock in the last month.

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
2019-9-6Bank of American/aBuy
2019-9-6Bank of American/aBuy
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

Alibaba stock analysis

Daily outlook

Shares of the e-commerce leader closed yesterday at $182.51 and stepped up a nice 1.14%.

The e-commerce leader closed yesterday at $182.51 and stepped up a nice 1.14%. On Aug/28 BABA price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily perspective, BABA is in a short term uptrend after plotting its last bottom ($175.37, on Monday) higher than the previous bottom, and its last top ($184.13, on Sep 19th) also over the previous top. Now trading in between its last bottom and last top BABA might consolidate in a plain range, waiting to break out over $184.13 or down under $175.37. Since SMA50d and SMA100d crossed up on September/6, BABA price climbed $3.57 per share (2.00%).

BABA stock chart (daily)

Weekly outlook

The Chinese e-commerce giant shares appreciated 1.86% this week, ending at $182.51. With this, it's been 4 climbing weeks in a row, soaring a 10.29%. Late August BABA climbed a dazzling 5.99% in just one week. By mid August BABA plummed a dreadful -6.11% in just one week.

Since price and SMA40w lines crossed up late August, BABA climbed $17.97 (10.92%).

BABA stock chart (weekly)

Alibaba stock price history

Alibaba IPO was on September 19th, 2014 at $92.70 per share1. Since then, BABA stock surged a 96.90%, with a yearly average of 19.40%. If you had invested right after BABA's IPO a $1,000 in Alibaba stock in 2014, it would worth $969.00 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 $222.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 14 price targets for BABA stock released in the last 30 days:
BABA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6Bank of AmericaReiterates$231.00$233.000.9%
2019-9-6Bank of AmericaRaises Target$231.00$233.000.9%
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-
(in average)$222.00$222.700.0%
The price prediction for Alibaba stock is $222.70, moving in a range between $280.00 and $195.00. In average, analysts' outlook on BABA price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since May, when Alibaba posted its last earnings report, it decreased a disappointing -3.59%. 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

In 2018, Alibaba annual revenues rocketed an astounding 58.12% to $250,266.00 M USD from $158,273.00 marked in 2017. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) decreased a -1.98% to 25.61%.

Alibaba presents anual results 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 dollars. When comparing this TTM figures with the last reported annuality, we can esteem the e-commerce leader business evolution since March 2018: Annual revenues up to , compared to lastest yearly report, climbed a super good 13.22%. In contrast, profit margin (net income/revenues) depreciated at 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 reported million in revenues for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin stayed stable a 0.00% compared to previous quarter when profit margin was 28.24%. When comparing turnover to same quarter last year, Alibaba sales marked a dreadful correction 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 company, it's always worth to have a look 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$474.5 B$887.5 B$33.9 B$528.3 M
Total shares2,600.0 M494.7 M838.8 M35.3 M
Float shares1,490.0 M416.2 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

Friday, September 20th, 2019
Open$182.31
Close$182.51
Day range$178.84 - $183.82
Previous close$180.46
Session gain1.14%
Average true range$3.56
50d mov avg$171.92
100d mov avg$169.48
200d mov avg$168.47
Daily patternlt06a
Weekly pattern lb11c

Alibaba performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Alibaba to Amazon.com, eBay and Overstock.com:
Stock3m6m12m
BABAAlibaba8.93%3.55%10.86%
AMZNAmazon.com-6.13%1.67%-6.31%
EBAYeBay1.13%10.94%19.90%
OSTKOverstock.com29.39%-18.69%-44.76%

Alibaba competitors

One check before investing in any stock is to review a list of its competitors, in this case for Alibaba. We picked 3 companies as Alibaba competitors as they are in the same industry or have similar market objectives.

Latest Alibaba stock news