Should I buy Alibaba stock today? Is Alibaba still a good buy? Will Alibaba stock go up? If these questions are on your mind, you’ve come to the right place. The beauty of the US markets is that you can invest in stocks from across the world and not just the US. The S&P 500 is a truly global marketplace and one such international stock that you can invest in is BABA.
Alibaba, the equivalent of Amazon in China, was founded in 1999. Alibaba is one of the few e-commerce companies that even comes close to Amazon’s revenue, growth, and size. Since the BABA IPO in 2014, Alibaba has seen a rise in its user base across Asia and has also reported consistent growth in revenue year on year.
Historical data suggests that the BABA stock has huge growth potential. But should you invest in a company simply because of a strong consumer-oriented business approach? Can the BABA stock deliver long term profits? Read this blog to understand if you should buy Alibaba stocks today or not.
The pandemic has led to an exponential rise in online shopping. E-commerce platforms like Alibaba have benefited from this trend since most consumers, regardless of age, have switched to ordering everything from toothbrushes to 4K TVs online.
Keeping with this trend, Alibaba reported revenue of $21.8 billion in August's first-quarter report. This is a 30% year over year increase which, by any standard, is phenomenal. The BABA stocks earnings increased by a factor of 15% to $2.10 per share as compared to Wall Street's prediction estimates that pointed to earnings of $1.98 per share.
Alibaba Stock (BABA) At A Glance
Stock Name: Alibaba Group Holding Limited (BABA)
Share Price: $232.73*
Market Cap: $648.318 Billion
Beta: 1.03 ( Risky)
P/E Ratio: 25.00 (Moderate)
52 Week Low: $169
52 Week High: $319.32
Historical Performance Of BABA Stock
Alibaba reported revenue of $23B in revenue in Q3. This represents a 58% increase from Q3 2020.
Alibaba Business Expansion And Products
Given below is a list of businesses and products Alibaba is involved in. This should give you a better sense of what all you’re buying into when you buy Alibaba stocks.
City Brain - AI global traffic patrol alarm system
XuanTie-910 - a processor faster than ARM Cortex-A73
Ant Financial Services
UCWeb & UCNews
7 Benefits Of Buying Alibaba Stock (BABA)
Based out of China, the fastest-growing economy
Strong e-commerce revenue
Growing cloud computing presence
Favourable policies & subsidies from the Chinese government
Solid overall revenue growth year on year
Growing user base & customer loyalty
Note: Historical performance does not guarantee future success. Please consult a Cube Wealth Coach or enroll for our US Advisory Service, before investing your hard-earned money into any stocks.
Note: All facts & figures mentioned above are from publicly available data on Google. 1 BABA share price in 2014: $93; 2021: $261. USD to INR: 2014: ₹62; 2021: ₹73.
Cons Of Buying Alibaba Stock (BABA)
Trade differences with the US
Unrealistic revenue growth expectations
The absence of Jack Ma
Why You Should Buy Alibaba (BABA) Stock Using Cube
Cube makes it easier for you to invest in your favourite companies such as Tesla, Starbucks, Google, Facebook, Amazon, Apple, and more. You can invest in US stocks with top-notch advice from award-winning RIA, Rick Holbrook from the comforts of your home.
Simply click on the "Buy US Stocks On Your Own" option.
But before you buy any international stock, it is important to know whether the stock or the investment itself is suitable for your investment goals or portfolio.
You can have a conversation with a Cube Wealth Coach to know whether US stocks can help your portfolio.
Should You Invest In BABA stock?
Alibaba continues to receive strong backing from the Chinese government while its user base continues to grow each day. The BABA stock is currently being traded at 32x earnings. If you’re comparing this with the revenue growth of 58%, the stock seems like a fair buy.
But there’s the risk in the form of the trade tensions going on between the US and China. Increased regulatory risks, as a result, could impact the BABA stock.
So whether you should invest in BABA stocks depends on factors such as your risk appetite, investment goals, financial health, and more can determine whether you should invest in Google stocks.
*Note: All facts & figures are as of 04-01-2021. While we update our blogs regularly, check out the Cube Wealth app for detailed facts & figures.
Watch this video to know how you can buy US stocks on your own using Cube
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.
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