Alibaba's stock is primarily listed on the Hong Kong Stock Exchange (HKEX) under ticker 9988, with the company also holding a U.S. ADR on the New York Stock Exchange (NYSE) under the ticker symbol BABA.
Alibaba Shares Today (HKG: 9988)
Alibaba Group, referred to simply as Alibaba, is a Chinese company specialising in e-commerce, technology, and various digital services. Founded in 1999 by 18 people led by Jack Ma, Alibaba started as an online marketplace to connect Chinese manufacturers with overseas buyers. Since then, it has grown into a global powerhouse with operations spanning online retail, cloud computing, digital payments, entertainment, and logistics.
Alibaba has various platforms under its banner. In e-commerce, it has Taobao and Tmall; in cloud computing, it has Alibaba Cloud; in international digital commerce, there is Alibaba, while it also has businesses in other sectors such as smart logistics, local services, digital media and entertainment, and healthcare. Alibaba also has a significant presence in financial services with its affiliate, Ant Group, which operates Alipay.
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E-Commerce and Tech Industry Comparison
Alibaba EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $8.73 | $94.47 billion |
| 2021 | $4.20 | $129.44 billion |
| 2022 | $1.84 | $127.84 billion |
| 2023 | $4.70 | $130.80 billion |
| 2024 | – | $132.42 billion |
Alibaba Dividend Yield
Alibaba's stock has seen significant volatility over the past few years. In late 2020, shares reached a high of $319, driven by the company’s dominance in e-commerce and its strong growth in cloud computing. However, regulatory crackdowns in China, particularly on tech companies, and economic concerns led to sharp declines in Alibaba's stock price until very recently. The recent change in direction for the Alibaba stock price is an impact of the various stimulus measures announced in China aimed at boosting its economy.
Annual Dividend Yield: 0.86%
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Alibaba Share Price Forecast
According to analyst data compiled by TradingView, out of 58 analysts covering Alibaba, a significant 49 have a Buy rating on the stock, while nine have issued BABA with a Hold rating.
A View From The Bulls: There is no shortage of bullish commentary on Alibaba. In September 2024, the Alibaba price target was raised to $136 from $116 at Citi. Analyst Alicia Yap, who maintained a Buy rating on the shares, said Citi believes the latest monetary and fiscal policy stimulus in China likely translates to an improving wealth effect which should boost consumer sentiment and willingness to spend. The analyst said she expects BABA to increase its investment and marketing promotion heading into China's Singles Day period to boost gross merchandise volume and consumer wallet spend.
A View From The Bears: Given the significant bullishness on the stock, which may be expected given its decline between 2020 and 2022, there is a lack of recent bearish calls from analysts. However, from a macro point of view, some analysts have warned that the China stimulus rally may fizzle out with more catalysts needed for a long-term rally. In addition, other potential headwinds investors should watch out for include regulatory pressure in China, geopolitical headwinds, and a global economic downturn.
Average Analyst Consensus 12-Month Price Target: $113.71
Our View: Alibaba remains one of the largest companies in the world, with a diverse portfolio. While headwinds have impacted the company's share price performance over the last few years, China's recent economic stimulus has lifted investor confidence in recent weeks, with the stock now up 50% for the year-to-date (as of October 4, 2024.), Alibaba’s long-term growth potential makes it a company worth considering for investors with a high-risk tolerance.
Who Should Buy Alibaba Shares?
Alibaba appeals to investors who are bullish on the future of China’s e-commerce market, and the growth of cloud computing. The company’s position in online retail, its focus on technological innovation, and its expansion into international markets provide significant growth opportunities.
Long-term investors with a tolerance for risk may find Alibaba shares attractive. Alibaba’s strong fundamentals, extensive digital ecosystem, and leadership in cloud services offer substantial potential for future returns, especially if the company can successfully navigate the various headwinds.
However, investors who are concerned about geopolitical risks or prefer companies with a lower risk profile may want to exercise caution. Regulatory actions in China and competition from both domestic and international players pose risks that could impact Alibaba’s growth trajectory.
Alibaba remains a compelling investment for growth-oriented investors with a long-term horizon, but it is not without risks.
