Alibaba stock: buy or sell?
September 20th, 2019
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.
|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 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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-6||Bank of America||n/a||Buy|
|2019-9-6||Bank of America||n/a||Buy|
|2019-8-5||Jefferies Financial Group||n/a||Buy|
|2019-3-29||Robert W. Baird||Outperform||Outperform|
Alibaba stock analysis
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%).
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%).
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 $222.70How 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-6||Bank of America||Reiterates||$231.00||$233.00||0.9%|
|2019-9-6||Bank of America||Raises Target||$231.00||$233.00||0.9%|
|2019-8-5||Jefferies Financial Group||Initiates||n/a||$216.00||-|
|2019-8-16||Stifel Nicolaus||Raises Target||$220.00||$225.00||2.3%|
|2019-5-16||Raymond James||Lowers Target||$285.00||$280.00||-1.8%|
|2019-3-29||Robert W. Baird||Raises Target||$178.00||$195.00||9.6%|
|2019-3-26||Morgan Stanley||Set Price Target||n/a||$196.00||-|
|2019-1-31||SunTrust Banks||Raises Target||n/a||$200.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince May, when Alibaba posted its last earnings report, it decreased a disappointing -3.59%. Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|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 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%.
|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 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:
|Market cap||$474.5 B||$887.5 B||$33.9 B||$528.3 M|
|Total shares||2,600.0 M||494.7 M||838.8 M||35.3 M|
|Float shares||1,490.0 M||416.2 M||790.0 M||28.4 M|
|- Institutional holdings (%)||42.1%||57.1%||88.0%||69.3%|
|- Insider holdings (%)||48.5%||16.1%||5.3%||24.4%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$178.84 - $183.82|
|Average true range||$3.56|
|50d mov avg||$171.92|
|100d mov avg||$169.48|
|200d mov avg||$168.47|
Alibaba performancePerformance 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:
Alibaba competitorsOne 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
- 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