Alibaba Stock Price: BABA Price Chart, History and Prediction
Founded in 1999, the online-only retailer Alibaba has significantly evolved from its initial approach to e-commerce, which was based on business-to-business sales. Today, the multinational offers a wide array of digital services and products, and it now arguably the only e-commerce company that can hold a candle to Amazon's growth potential and size. Are you now wondering whether or not the Alibaba stock price makes BABA shares a buy? This guide is here to provide all the answers.
Alibaba BABA Stock Price Chart Today
Alibaba Stock Price History
While we cannot predict the Alibaba future stock price with certainty, we can look back at the BABA’s historical trends. These should help us make more reliable Alibaba stock price predictions.
Alibaba Stock Price Historical Trends
In September 2014, Alibaba raised $21 billion when it priced its IPO (Initial Public Offering) on the NYSE at $68 per share – making it the largest offering in United States’ history. This was just the beginning of the investor craze. Indeed, just a day later, BABA stock price began trading at $92.70, a 36% jump from the IPO price; and in just two months, Alibaba shares prices had soared 76% from the IPO price.
However, Alibaba stock price then started to fall. This was in part to China's economy slight instability at the time, threatening the rise in consumer spending that Alibaba required to keep growing. In response, the Alibaba stock slid down, bottoming out at $60 in February 2016.
By the end of 2016, the stock price Alibaba had swiftly recovered more than half the setback, thanks to news that Alibaba would be partnering up with Disney to bring the entertainment giant's iconic movies to the Chinese market as well as news that it was acquiring Chinese streaming outfit Youku Tudou.
The Alibaba stock price shot up by more than 91% over the next two years, closing at $208 on June 10, 2018. But by December 2018, the Alibaba stock price was trading at $132, mainly because of China's trade tensions with the U.S and news that founder Jack Ma would be stepping down, and Alibaba's earnings reports that were deemed disappointing. Since then, the Alibaba stock price has shot back up, as it rapidly accelerated to its October 12, 2020, all-time high of $309.
Alibaba Stock Price Splits
Alibaba only has one stock split in its history, performed on July 15, 2019. The Alibaba stock split was an 8-for-1 stock split. At the time, they increased their number of available ordinary shares from 4 to 32 billion. This implies that a shareholder who previously held one share now owned 8. However, the total value of the shares remained the same.
Shareholders voted in favour of this stock split in an annual meeting. Moreover, according to Alibaba, the split was a way for the company to increase the number of shares it sold and raise more capital for growth.
During the Alibaba 8-for-1 stock split, the firm also launched a secondary listing on the Hong Kong exchange, offering 500 million new shares in China. The Alibaba Hong Kong stock price per share during Hong Kong's IPO was $22.50, and it helped Alibaba raise enough funds to expand its operations.
Alibaba Stock Price Prediction
Let’s now look at what we can expect from the Alibaba stock price predictions.
Alibaba Stock Price Targets
The Alibaba stock price broke out of a flat base with a $268 buy point during the week ended August 28, 2020. It rallied for a while, then shot up a little with the broader market. A new flat base formed with a $300 buy point, and that's the stock price target Alibaba traders and investors should watch.
Analyst Consensus and Alibaba Stock Price Predictions in 1, 2, 5, 10 years
- According to AI Pickup, for 2022, the average Alibaba share price forecast from 29 analysts who have issued ratings on the stock is $185, with a high estimate of $195 per share and a low estimate at $175 per share.
- According to predictions from the same analysts, the average Alibaba stock price predictions for 2025 and 2030 are $285 and $407, respectively. In the meantime, predictions from Coin Price Forecast are more bullish on the long-term outlook.
- The platform predicts that the stock could end 2021 at $191, rise further to $242 by the end of 2022, and $373 by the end of 2025. It suggests that the price per share could reach $529 by the end of 2030.
How Can I Buy BABA Stock at Today’s Price?
If you think this e-commerce giant has room to grow and generate returns for you, then all you'll need to do is find a reliable and regulated brokerage platform you can use to invest in the company's stock, and ZFX is one of them.
ZFX is a broker that offers many benefits. These include the intuitive MetaTrader 4 platform, a free demo account, learning resources and a wide selection of trading assets. Other advantages of investing with ZFX include a leverage of up to 1:100, competitive fees and a very solid regulation.
Investing in Alibaba: Tutorial
Here is a step-by-step guide on how to register with ZFX.
Step 1: Register with ZFX
First, go to the ZFX homepage and find the "Open an account" link at the top.
On the page that pops up, you'll be required to provide some basic information like your email address and name. After filling out all the details, hit "Next" at the bottom.
Step 2: Make Your First Deposit
To start investing in Alibaba stock at today's price, you'll need to transfer a specific amount to your new ZFX brokerage account from your bank account.
Step 3: Account Verification
In this step, ZFX will ask for documents that can prove your identity and address, like an officially issued photo I.D and utility bill. ZFX should take less than 24 hours to review your documents.
Step 4: Invest in Alibaba Stock at the Current Price
After funding your account, you're ready to start investing in Alibaba stock. Find the "Download Mt4" link at the top of the page as shown in the image above, then install the software on your phone or desktop. Log in using the details ZFX sent to your email address, and start investing.
To Buy or Not to Buy Alibaba Stock?
Here are a few indicators to help you figure out if the BABA share is a buy.
Alibaba's International and Sectorial Expansion
First, forward-looking traders might want to pay attention to Alibaba's international growth numbers. Currently, over 65% of Alibaba's revenue comes from China, but the company also has investments in startups in Southeast Asia and South Asia. These include Lazada, a Singapore-based e-tailer firm and Paytm, an Indian digital payment provider. Rising internet penetration rates and higher incomes are likely to strengthen both areas' ecommerce markets and contribute to Alibaba shares' bottom line.
The multinational tech company has also acquired or launched an array of other firms, including an online travel platform, a shipping conglomerate, and even a chain of supermarkets.
Alibaba's New Ventures are Profitable
Experts believe that Alibaba's fast-growing new companies should make it increasingly profitable and diverse. Alibaba's business empire includes streaming platform Youku, cloud computing service Alibaba Cloud, and logistics division Cainiao. All these ventures have shown lots of potentials, and, as the future unfolds, they could help diversify Alibaba's revenue.
Some of Alibaba's promising businesses include Cainiao, which grew by 68% in 2021. It also owns Alicloud, which grew its revenue by 50% over the same period.
Alibaba's Growth in the Cloud Industry
With a population of over 1.4 billion, the People's Republic of China is the largest nation on earth. Better yet, the nation's rising middle class has resulted in higher consumerism, which bodes well for most industries in the country. Cloud computing is one of the industries set to benefit.
Alibaba is still currently the cloud computing market leader in Asia, as its activities in the sector are increasingly getting compared to the success of Amazon's cloud business. For Q4 2020, for example, the Alibaba cloud achieved revenues of $2.4 billion.
Things to Know About the Alibaba Stock Price Before You Invest
Before you start trading BABA at today's price, here are a few things to keep in mind and important questions to ask yourself.
How Much Upside Are You Expecting for the Alibaba Stock Price?
As an Alibaba investor, you need to consider the potential upside if everything Alibaba’s goals work out over the long run. Amazon has a $1.73 trillion market cap, but makes around four times as much revenue as Alibaba, which has a market cap of over $480 billion. That implies that going by the companies' current price P/S (price-to-sales) ratios, they are relatively equal in valuation.
Alibaba Share Price and the China Factor
In 2020, Jack Ma criticized Chinese banking regulations, pointing out that they have an outdated mentality about risk and lack innovation. These comments came shortly before another Jack Ma-founded firm, Ant Group, was scheduled to go public. In response, the Chinese regulators then blocked the planned IPO, citing potential risks to China's financial system. Even worse, Ma disappeared from the public spotlight for months following his controversial comments.
Thus, as an investor, you ought to understand that the Chinese government involves itself in the nation's businesses. It then retains the authority to intervene in these companies' operations however it sees fit.
BABA vs its Competitors
For years, many competitors have tried to loosen Alibaba's grip on China's e-commerce industry. NetEase, Vipshop Holdings, and JD.com have been strong rivals and could become serious threats in the future. Another company Alibaba stock traders and investors should watch out for is Pinduoduo.
Several smart moves by the company quickly set it up for success. Thus, today, Pinduoduo has more than 824 million active buyers on its platform. One of these smart moves included an early partnership with Tencent. The partnership then helped Pinduoduo leverage WeChat to acquire users cheaply and rapidly.
Plan Out Your Investment Strategy
Before investing in the Alibaba stock, it's important to first study various investing strategies. You can then pick the one you think will best suit your investing style. Three of the key techniques used by some of the most seasoned Alibaba stock investors include Income Investing, Growth Investing, and Value Investing.
Bottom Line: What Can We Expect From the Alibaba Stock Price?
The only thing impeding Alibaba stock's price flight is the Chinese government's clampdown against the nation's tech giants. That said, many concerns that bears have are not only far-fetched. However, they should also not impact Alibaba's long-term bull case.
After all, Alibaba's revenues have been growing at an incredible pace over the last several years. Add to that the fact that the company has multiple catalysts across many key business segments, particularly its cloud business, and you'll see why Alibaba stock is a buy despite regulatory concerns.
Do you believe the Alibaba stock price is currently at an interesting level? Do you feel ready to invest in BABA because of this? If so, then ZFX can help you invest in minutes. Indeed, this broker is secure and reliable, and as mentioned in this guide offers many benefits to its clients.