BABA - Alibaba Group Holding Limited

NYSE - NYSE Delayed Price. Currency in USD
165.51
+5.60 (+3.50%)
At close: 4:00PM EDT

166.50 +0.99 (0.60%)
After hours: 7:55PM EDT

Stock chart is not supported by your current browser
Previous Close159.91
Open162.89
Bid166.40 x 800
Ask166.45 x 1100
Day's Range161.95 - 169.11
52 Week Range129.77 - 207.23
Volume33,880,941
Avg. Volume17,297,515
Market Cap430.917B
Beta (3Y Monthly)1.85
PE Ratio (TTM)47.33
EPS (TTM)3.50
Earnings DateAug 21, 2019 - Aug 26, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est217.23
Trade prices are not sourced from all markets
  • Lighthizer to testify before Congress on Trump's trade wars as tensions grow with Iran
    Yahoo Finance Video13 hours ago

    Lighthizer to testify before Congress on Trump's trade wars as tensions grow with Iran

    U.S. Senator Chris Van Hollen joins Yahoo Finance to discuss the impact of Trump's trade war saying it's "certainly hurting the U.S. economy." He also weighs in on its impact of Chinese stocks and rising tensions with Iran, saying we "need all the facts" on the tanker attacks.

  • Benzinga8 hours ago

    A Look At Some Large Alibaba Option Trades

    Alibaba Group Holding Ltd (NYSE: BABA) shares have held up relatively well up to this point in 2019 considering the beating other Chinese stocks have taken as the trade war between the U.S. and China has ramped up. On Tuesday morning, Benzinga Pro subscribers received a series of options alerts related to Alibaba. At 9:39 a.m., a trader bought 576 put options with a $177.50 strike price expiring on July 5 at the ask price of $14.35.

  • This fund manager goes his own way in China by looking beyond the trade spat
    MarketWatch9 hours ago

    This fund manager goes his own way in China by looking beyond the trade spat

    Baillie Gifford partner Richard Sneller also shares insights on Russia, Brazil, Argentina and rising demand for oil.

  • How The NBA Makes Money: Television, Merchandising, Ticket Sales
    Investopedia10 hours ago

    How The NBA Makes Money: Television, Merchandising, Ticket Sales

    The National Basketball Association has moved past Major League Baseball to represent the second most popular sport in the United States. How does the NBA make money?

  • Barrons.com12 hours ago

    Alibaba Stock Gets a Boost From New Hong Kong Listing Plans

    The China internet giant has rallied ahead of the broad market this year, rising more than 21% in 2019. Citigroup says the momentum can keep growing.

  • Benzinga13 hours ago

    Alibaba Promotes CFO: What It Means For Investors

    Wu will take over responsibility from Executive Vice-Chairman Joe Tsai, who was demoted to a supportive role in the strategic investments unit, according to Reuters. The change comes at a time when Alibaba is investing in new business lines like cloud computing at a time when e-commerce growth is slowing. Alibaba's management shuffle represents the most significant changes at the senior level since co-founder Jack Ma announced his retirement, Alibaba said.

  • Is Alibaba Preparing for Life after Jack Ma?
    Market Realist15 hours ago

    Is Alibaba Preparing for Life after Jack Ma?

    On June 18, Alibaba (BABA) announced senior management changes. Alibaba seems to be gearing up for life after Jack Ma. Daniel Zhang is slated to become Alibaba’s chairman after Ma retires in September.

  • The Hong Kong Alibaba Stock Listing Shows Globalization’s Failure
    InvestorPlace16 hours ago

    The Hong Kong Alibaba Stock Listing Shows Globalization’s Failure

    InvestorPlace contributor Brad Moon recently covered the news about Alibaba (NYSE:BABA) filing for a Hong Kong listing that could see it sell up to $20 billion in Alibaba stock. More than that, it gives the ecommerce giant a secondary stock listing in Hong Kong, making it much easier for Chinese investors to own BABA stock.Source: Charles Chan Via FlickrMoon put it this way:"A company of this size choosing to list in Hong King sends the message that Chinese companies don't necessarily need to seek an American IPO to succeed. Making the situation worse, current tensions between China and the U.S. have Chinese companies looking for ways to reduce their exposure to American investment…Other Chinese stocks that are traded in the U.S. could take the same route as BABA stock and also look to Hong Kong for a listing."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn this scenario, Chinese companies could eventually skip New York altogether, opting to list closer to home, making it much more difficult for U.S. investors to get in on the tech action in that country. * 7 Top-Rated Biotech Stocks to Invest In Today It's a Problem for Investors EverywhereThis isn't a problem for just U.S. investors. Regular Joe's around the world, despite technology and globalization, still have a hard time buying stocks outside their own country. It's a big reason ETFs have taken off. If you can't buy Remgro (OTCMKTS:RMGOF), a South American holding company controlled by the Rupert family, you buy Franklin FTSE South Africa ETF (NYSEARCA:FLZA) instead, the ETF's 11th largest holding. If you're a believer in modern portfolio theory and efficient markets, buying FLZA makes a whole lot of sense. However, if you want to build a global portfolio of companies that are good capital allocators, as Remgro is, it's a much more difficult task. Why can't someone in China go to their computer and buy Alibaba without having to set up accounts with a broker that does business on U.S. stock exchanges? Here in Canada, Lululemon (NASDAQ:LULU) used to be dual-listed in Toronto and NASDAQ. In June 2013, the Vancouver-based apparel company delisted its shares on the Toronto Stock Exchange, opting to go with a sole listing on NASDAQ. For them, it was all about cost. By keeping the listing active, regulatory filings, etc. At the time, the TSX was moving 90,000 shares a day of LULU compared to 1.9 million on NASDAQ."They had very thin volume, considering the expenses of staying in the exchange. And I think they decided that was unwise. It does make sense at the end of the day that they are carefully managing expenses," said Betty Chen, senior vice president at Wedbush Securities Inc. in San Francisco at the time of the delisting. Today, if I want to buy Lululemon, I go to my online brokerage account, paying a commission for the trade and a foreign exchange fee to convert Canadian cash to U.S. cash. However, if I want to go outside Canada or the U.S., my life gets a lot more complicated. Why Does This Happen?With the advent of blockchain technology, I ought to be able to make financial transactions anywhere in the world, bypassing the traditional brokerage system.Yes, I'm sure this raises plenty of red flags about money laundering, etc., but like the photocopier (the 8.5 by 11 piece of paper you lay on the glass seems to be in a different place for every manufacturer) it would be far more efficient to have one system that works well in every part of the world in a seamless manner.The fact that Alibaba has to list Alibaba stock in Hong Kong to appeal to Chinese investors, and the Chinese government to a lesser extent, suggests the global sourcing of capital remains incredibly backward and old school. I get that this secondary listing has politics written all over it given the tensions between the U.S. and China, but to me, this says less about Alibaba stock and more about the failure of globalization.If the world were truly global, I could buy 100 shares of Remgro or a stock listed in Hong Kong or Beijing for $4.99. I can't. Can you? I doubt it. The Bottom Line on Alibaba StockIf you own BABA, I don't think this in and of itself does anything for the stock in the long haul.The $20 billion it will raise from the secondary listing should come in handy as it continues to grow its ecommerce and cloud businesses outside China. That should be good for its stock.However, I wish we didn't have to have this conversation. One listing should be suitable for investors anywhere in the world. Full stop. The fact that it's not is troubling, to say the least. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post The Hong Kong Alibaba Stock Listing Shows Globalization's Failure appeared first on InvestorPlace.

  • US-China Trade War Is Damaging China’s Job Market
    Market Realist16 hours ago

    US-China Trade War Is Damaging China’s Job Market

    While the deteriorating job market could damage China's economy in the long term, Chinese stocks and ETFs are falling right now. FXI and GXC have lost nearly 8.7% and 9.7%, respectively, in the second quarter.

  • Reuters22 hours ago

    UPDATE 2-Alibaba puts CFO in charge of investment in major management reshuffle

    BEIJING/SHANGHAI, June 18 (Reuters) - China's Alibaba Group Holding Ltd on Tuesday unveiled its most significant business reshuffle since co-founder Jack Ma announced his pending retirement, as the e-commerce firm looks to bolster its investment focus in the face of slowing growth. Chief Financial Officer Maggie Wu will oversee Alibaba's strategic investments unit, taking over that responsibility from Executive Vice-Chairman Joe Tsai who will support Wu in her expanded role, the firm said on its official WeChat account.

  • Alibaba puts CFO in charge of investment in major management reshuffle
    Reuters22 hours ago

    Alibaba puts CFO in charge of investment in major management reshuffle

    BEIJING/SHANGHAI (Reuters) - China's Alibaba Group Holding Ltd on Tuesday unveiled its most significant business reshuffle since co-founder Jack Ma announced his pending retirement, as the e-commerce firm looks to bolster its investment focus in the face of slowing growth. Chief Financial Officer Maggie Wu will oversee Alibaba's strategic investments unit, taking over that responsibility from Executive Vice-Chairman Joe Tsai who will support Wu in her expanded role, the firm said on its official WeChat account. The change comes as Alibaba invests in new business lines such as cloud computing as a boom in its core e-commerce has peaked and revenue growth slows.

  • Financial Times22 hours ago

    Alibaba reorganises ahead of planned Hong Kong listing

    Maggie Wu, chief financial officer, will now oversee strategic investments, a key area for the group which has its roots in ecommerce but that also boasts a portfolio of more than 100 investments. from Jack Ma, the English teacher turned entrepreneur who founded the group two decades ago. Mr Ma remains as chairman until September, when the role will pass to Mr Zhang.

  • 3 Leading Tech Stocks I’d Buy On A Dip
    InvestorPlace2 days ago

    3 Leading Tech Stocks I’d Buy On A Dip

    The trade war rhetoric has had a negative impact on investor sentiment as well as prices of many tech stocks. As weeks go by, not many analysts believe that the U.S. and China are likely to conclude a comprehensive trade agreement soon. The negotiations may well drag out right up to the U.S. presidential elections. Therefore, the recent volatility we have experienced, especially in the tech sector, is likely to stay with us for a while.Today, I am going to discuss three tech stocks that may be appropriate for investors who are looking for stocks that have had pullbacks in price and thus offer better risk/reward ratios than they did several months ago. These stocks are Alibaba (NYSE:BABA), AT&T (NYSE:T) and Oracle (NYSE:ORCL).I believe investors who buy into the shares of BABA, T or ORCL at any upcoming dip or even around the current levels will be rewarded well in a few years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today Shareholders who are still concerned about potential short-term risks may also consider hedging their positions. In that case, covered calls or put spreads with July 19 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility. Alibaba (BABA)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments, including e-commerce, cloud and electronic payments; potential end to U.S.-China trade warsExpected Price Range Until Next Earnings in late August: $135-$165The current environment offers valid reasons to be concerned about Chinese stocks, including Alibaba, the e-commerce giant. Alibaba's share price has thus seen a significant amount of weakness of late. Over the past year, the stock is down over 21%.BABA stock has been increasingly volatile on the back of the recent earnings released on May 15 as well as the U.S.-China trade war and Chinese economic concerns.Yet Wall Street concurs that with a population of almost 1.4 billion people, China's economic growth is still in its early stages and that the Chinese middle class is likely to expand for a long time.Furthermore, consumer disposable incomes are also going up, fueling growth in many sectors, including e-commerce.In fact, the e-commerce market in China is forecast to almost double within the next four years to reach $1.8 trillion. Therefore, even if the Chinese economic growth pauses for a few quarters to come, the country's growth potential is intact.Alibaba's current share of the Chinese e-commerce space is almost 60%. Many analysts believe that BABA's bottom line is not going to be too adversely affected by these current trade wars as its business model is tied to China directly, decreasing the long-term risks of bi-party trade wars.BABA's core e-commerce business contributes to about 85% of its revenue. Yet BABA is rapidly expanding into many other lucrative industries, including cloud computing infrastructure, digital payments, online entertainment and food delivery.Alibaba's concentrated push deeper into cloud computing is increasingly being compared to the success of Amazon's (NASDAQ:AMZN) cloud business. In cloud computing, BABA is now the market leader in Asia.In 2018, Alibaba merged its food delivery platform Ele.med with its lifestyle app Koubei to be able to capture a higher market share in servicing "hungry customers" and to better compete with Meituan, which is backed by Tencent Holdings (OTCMKTS:TCEHY).As a result of increased diversification, Alibaba's revenue is expected to grow by double-digit-percentage rates. Such a growth rate would indeed be impressive for a company with a market cap of $415 billion.On May 15, when BABA released its quarterly results, both sales and earnings exceeded estimates. Total revenue came at $56.1 billion, an increase of 51% year-over-year.In the earnings statement, shareholders paid attention to four main areas: * Core commerce (BABA's largest segment grew 54% YoY); * Cloud computing (revenue soared 76% YoY); * Digital media and entertainment (revenue increased 8% YoY); and * Innovation initiatives (where revenue jumped 22% YoY ).One important highlight was that BABA's mobile monthly active users (MAUs) on its e-commerce platforms reached 721 million. The owners of BABA stock will be interested to know the corresponding number to be released in the next statement in late August.Another metric to pay attention to is Alibaba's operating margin, which currently stands at 15%. Over the years, BABA's high operating margin has contributed to its profitability, which has been even higher than that of Amazon (NASDAQ:AMZN). BABA's net profit margin is also over 23%. In short, Alibaba is showing strong performance across the board.Finally, forward-looking investors may want to pay attention to BABA's international growth numbers too. Currently, more than 90% of the e-commerce giant sales are made in China.But BABA also has investments in start-ups in South Asia and Southeast Asia. Higher incomes and rising internet penetration rates are likely to strengthen both regions' e-commerce markets and contribute to BABA's bottom line.Given the fundamental strength of the company, I regard BABA stock buy-worthy at current levels.However, in the coming weeks, I do not expect BABA stock to regain its recent high of $195.72, which was last seen on May 3.Instead, BABA stock is likely to trade in a range, between $165 and $135, for several weeks, possibly until its next earnings report expected in late-August.The daily volatility of Alibaba stock is high, giving it a wide trading range, so short-term traders should proceed with caution. Nonetheless, long-term investors could view any decline in BABA stock as a good opportunity to buy into the shares. AT&T (T)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments; growing content through WarnerMedia; decreasing debt levels; respectable dividend yieldExpected Price Range Until Next Earnings in late July: $30-$37.5As internet-based communication becomes increasingly integrated into our daily lives, I find AT&T shares well-positioned to benefit from various commercial opportunities that would eventually benefit the stock price. June has already rewarded T investors well; the stock is up over 7% so far.Yet over the past few years, AT&T stock had lagged behind the broader market. Within the past 12 months, the stock has basically remained flat. The T share price on June 14, 2018 closed at $32.52. A year later, T stock is hovering around the same level.Even though the company has a strong brand and wireless infrastructure -- two factors that are likely to make it a dominant player in the 5G sphere -- the AT&T stock price has not yet reflected the company's robust forward-looking potential.Thus, now may be a good time for investors to decide whether the rest of the year could witness a sustained up move in the price of T shares.AT&T reported Q1 2019 earnings on April 24. With a market capitalization of $230 billion, the Dallas-based group breaks down revenue into six main segments: * Mobility (includes wireless subscribers) * Entertainment Group (includes DirecTV and U-Verse customers) * Business Wireless (provides services to companies and the government) * Latin America (includes Latin American and Mexican operations) * Warner Media (includes HBO, Turner and Warner Bros.) * Xandr (handles all advertising business)This diversified revenue stream of T stock is important for long-term shareholders who do not want to worry too much about short-term volatility.The company's key Mobility wireless segment generated revenue of $17.57 million, up 1.2% year-over-year. AT&T also added wireless subscribers and its domestic wireless business is neck and neck with Verizon (NYSE:VZ) for market share.In June 2018, a federal court approved the merger of AT&T's $85 billion acquisition of Time Warner -- a deal that has now turned AT&T into a media giant and "content king."This merger has been weighing on the T stock price for some time; however, the rest of 2019 should see the question marks slowly disappear.In the quarterly report, investors cheered that the group was selling off assets to decrease its debt burden. Indeed, over the past few quarters, AT&T's debt load had been on Wall Street's radar. The company finished 2018 with $171 billion of debt.The group has recently sold its minority stake in Hulu, a premium streaming service, to Hulu's other owners Walt Disney (NYSE:DIS) and Comcast (NASDAQ:CMCSA), for almost $1.5 billion.Acquiring Time Warner has bloated this debt load. However, the communications giant is now working to cut costs and debt at the same time. Management realizes the importance of decreasing the level of debt sooner than later.In addition to the company's strong earnings power through telecom and media-related operations, T stock also offers a strong dividend yield at over 6.3%. AT&T's dividend is a big attraction for many long-term investors seeking passive income. * The 10 Best Index Funds to Buy and Hold In short, along with the rest of the market, T stock could experience volatility near term. But long-term, the prospects for AT&T stock are robust and it offers a respectable dividend yield for income investors. Qualcomm (QCOM)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments; moving on from recent regulatory probes and legal headlines; 5G Leadership; respectable dividend yieldExpected Price Range Until Next Earnings in late July: $55-$75Shares of Qualcomm, the leading supplier of modem technology for smartphones, have been in a free fall since early May.On May 2, QCOM stock saw an intraday high of $90.34. Then on May 29, Qualcomm shares closed at $65.76.Legal headlines were mainly behind the unforgiving drop in the QCOM stock price. A federal regulatory probe recently concluded that the company had violated antitrust laws and that its licensing fees were too high.Qualcomm stock reports revenues in three main segments: * QCT (Qualcomm CDMA Technologies); * QTL (Qualcomm Technology Licensing); * QSI (Qualcomm Strategic Initiatives)Wall Street saw the ruling as having a negative impact on Qualcomm's QCT (i.e., chipmaking) and QTL (i.e., patent licensing) segements.Qualcomm is the largest maker of chips for smartphones, and its chipsets account for about two-thirds of its total revenue. Its chipmaking QCT segment produces the Snapdragon mobile system on a chip (SoC), a semiconductor product which bundles together a CPU, GPU and modem in a single unit.Its second-highest source of revenue is mobile-phone royalties and licensing. About 60% of its pre-tax profits are from its patent-licensing division, thanks to royalties from 3G and 4G technologies the chip giant helped invent.Qualcomm's patent portfolio is crucial for the company and the licensing business is the higher-margin segment of the three segments.The chip giant is currently appealing this ruling. Although the company may be successful in overturning the ruling, going forward, there is likely to be further choppiness in the stock price.In other words, if the company loses the appeal, the result could be fewer chipset sales in the QCT segment as well as much lower QTL patent licensing revenue for Qualcomm stock.On the other hand, a successful appeal could push QCOM stock upward, possibly to new highs. Yet, it will probably be several months before the company has a final answer from the courts.Analysts believe QCOM will also play a dominant and early role in 5G, replicating its success with 3G and 4G mobile networks. If the analysts are correct, then Qualcomm stock is indeed a good pick for long-term investors. The company is likely to provide a significant part of the intellectual property that will be used to develop 5G communication standards.Recent legal troubles and the subsequent share price drop in QCOM have followed the positive headlines in the second half of April. The chipmaker and Apple (NASDAQ:AAPL) had announced earlier that they had finalized a favorable agreement regarding intellectual property licensing fees for chips used in Apple's mobile devices.This agreement now dismisses all outstanding litigation between the two parties. Because of the success of the settlement, QCOM believes its revenues are likely to double annually in Q3 (the group's fiscal 2020 starts on Oct. 1).In other words, over the past few weeks, important legal developments have been the main driver behind the major volatility in QCOM stock. Therefore, as the dust settles, I expect investors to concentrate once again on the bottom-line results as well as the leadership position of the company.Meanwhile, the 3.6% dividend yield of QCOM stock and the generous stock repurchase program are likely to act as support in case the price of Qualcomm shares declines further in the coming weeks.For investors not familiar with Qualcomm, this drop in its share price may provide a good opportunity to research the company and decide if they would like to include QCOM stock in a long-term portfolio.Tezcan Gecgil holds covered calls on T and VZ stock (June 21 expiry). More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Leading Tech Stocks I'd Buy On A Dip appeared first on InvestorPlace.

  • TheStreet.com2 days ago

    Alibaba Listing Would Brighten a Hong Kong Darkened by Mainland's Clouds

    Hong Kong stocks breathed a little life on Monday. It would likely be one of the top three stock offerings in Hong Kong's history. The city is exhausted after more than a month of protests that have finally forced the postponement of an extremely unpopular proposed law to allow suspects to be sent from Hong Kong to China for trial.

  • Benzinga2 days ago

    Chinese Brands Are Taking The Global Economy By Storm

    Chinese stocks have taken a big hit from the trade war, with the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) down 13.8% in the past year. BrandZ recently released its Top 100 Most Valuable Global Brands list for 2019. Meituan is an online-to-offline e-commerce service platform with 600 million users and 4.5 million business partners throughout China.

  • Benzinga2 days ago

    Alibaba Proposes Stock Split To 'Increase Flexibility' Ahead Of Capital Market Activities

    Alibaba is proposing an eight-for-one stock split that will increase shares outstanding from four billion to 32 billion, according to CNBC. The proposal is part of management's desire to "increase the flexibility" ahead of future capital market activities, including a $20 billion potential IPO in Hong Kong. CNBC said Alibaba has multiple reasons to proceed with a stock split, including making shares more attractive to new investors at a lower price point.

  • Alibaba Stock Split: What BABA Investors Should Know About the 1-for-8 Proposal
    InvestorPlace2 days ago

    Alibaba Stock Split: What BABA Investors Should Know About the 1-for-8 Proposal

    An Alibaba stock split proposal has been made by the company in an effort to increase its number of shares.Source: Shutterstock Here's what investors in Alibaba (NYSE:BABA) need to know about the stock split proposal. * The Alibaba stock split would have the company dividing one share into eight shares. * This means that the company will be increasing its number of shares from 4 billion to 32 billion. * The company says that it will be holding a vote on the Alibaba stock split proposal during its annual shareholders meeting. * This meeting will be taking place on July 15, 2019. * If shareholders approve of the stock split, the Alibaba says that it will occur no later than July 15, 2020. * The company is advising shareholders in BABA stock to vote in favor of the plans to split the stock. * Alibaba claims that the stock split will also create a lower point of entry for more investors. * It says that this will give the company more flexible capital to work with in the future. * The stock split may have to do with the company's plans to hold an initial public offering in Hong Kong. * Some reports claim that the company may be able to raise as much as $20 billion from an IPO in Hong Kong. * 7 Top-Rated Biotech Stocks to Invest In Today You can follow these links to learn more about the Alibaba stock split proposal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBABA stock was up 1% as of Monday afternoon. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Alibaba Stock Split: What BABA Investors Should Know About the 1-for-8 Proposal appeared first on InvestorPlace.

  • TheStreet.com2 days ago

    How to Trade Alibaba With Stock Split on Horizon

    At current prices, it would drop the stock price to about $20, although it obviously wouldn't alter the value of investors' current holdings or the total market cap of the company. Remember, when a company goes through a stock split, it only alters the price of the stock and not the value of one's holdings. For instance, if an investor had 10 shares of Alibaba stock trading at $160, they would have a position value of $1,600.

  • Barrons.com2 days ago

    Alibaba Stock Jumps After Proposing Stock Split Ahead of Hong Kong Listing

    The stock split aims to “increase flexibility in the company’s capital raising activities” and is seen as another hint that a Hong Kong listing is likely to happen later this year.

  • What Alibaba Hopes to Achieve with Its Stock Split
    Market Realist2 days ago

    What Alibaba Hopes to Achieve with Its Stock Split

    Alibaba (BABA) has announced a one-to-eight stock split. The company is reportedly planning a Hong Kong listing that could raise almost $20 billion for the Chinese e-commerce giant. The company is slated to propose the stock split to shareholders at its upcoming annual general meeting.

  • Subscription Numbers Make iQiyi Stock Look Like a Great Buy Here
    InvestorPlace2 days ago

    Subscription Numbers Make iQiyi Stock Look Like a Great Buy Here

    Investors should exercise caution investing in companies that are both losing money and are listed in China. Such is the case with iQIYI(NASDAQ: IQ). Escalating trade wars between the U.S. and China scared investors away from China-based companies and that move has been costing iQIYI stock.Source: Shutterstock Even after JD.com (NASDAQ: JD) and Alibaba Group (NYSE: BABA) reported solid quarterly sales growth, the stock failed to return to yearly highs. So, with iQIYI reporting first-quarter revenue growth of 43% but a loss of around $270 million, what is there to like about this company?iQIYI's subscriber base grew an impressive 58% to 96.8 million, up from 61.3 million last year. Revenue grew 43% but net losses doubled to around $270 million. The company effectively strengthened its platform with user growth and attracted new users, increasing overall user stickiness in the quarter.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Both DAU on the mobile app and time spent grew in the double digits, demonstrating effective marketing campaigns and premium content resonating with users. The Legend of Haolan, The Golden Eyes and The Legend are examples of premium, high-quality original drama driving subscriber growth.iQIYI's secondquarter revenue guidance of 6.91 billion - 7.29 billion yuan (USD $998 million - $1.05 billion), up 12-18% Y/Y is disappointing investors with a short-term time horizon. Revenue growth lags with the subscriber additions. If the time spent per user increases, expect iQIYI reporting higher revenue later this year.Still, the company reported ad revenue remaining largely flat compared to last year. It is maintaining a cautious outlook, factoring the macroeconomic weakness in China that is driven by the ongoing trade disputes. Opportunity in iQIYI StockiQIYI's self-produced content, premium content, and ad solution should keep a positive business momentum despite the macro headwinds ahead. Viewership should grow, driven by advertising initiatives to attract new subscribers. IQIYI is building multiple business engines to diversify.Its gaming business performed well in the first quarter while its content unit will incorporate more Chinese cultural values. The richer its content library gets, the wider an audience iQIYI will attract.IQIYI is exploring the prospects of 5G with China Unicom. It launched an 8K VR visual experience center in March. Its "Qisubo" service integrates CDN technology with 5G Mobile Edge Computing and ensures high frame rates for videos having lots of interactivity. As Qisubo matures, its service may be used in hotels, high-speed trains, airports, universities, and anywhere high-quality video content is displayed. Headwinds for iQIYI StockWith all the strong growth prospects ahead, investors cannot ignore the growing expenses and quarterly loss. SG&A expenses rose 62% in the first quarter, primarily due to higher marketing spend and increased share-based compensation. R&D costs, which rose 54%, is expected for a technology firm that must invest to stay ahead.Falling content costs could offset the other expense increases. Policy changes and regulatory censorship may have contributed to its 20% sequential drop in content costs in Q1. Looking ahead, the company expects steady content costs for the second and third quarter.Subscriber growth outpaced competitors but could slow if its peers counter iQIYI's successful initiatives. Still, strong original content and variety shows like Idol Producer resonate well with viewers.Revenue from advertising could continue lagging as the trade war remains unresolved. On the flip side, a resolution between the U.S. and China would lead to a strong rally in IQ stock. Investors will anticipate a rebound in ad revenue as trade levels rebound and the economy in China strengthens. Valuation and Your Takeaway on iQIYI StockIQ stock is getting close to its IPO price of 2018. Analysts are cautious of the stock's upside, predicting a gain of just 9%. In a five-year DCF revenue exit model, iQIYI needs revenue growing 25% annually to justify a fair value of $20.50. But after the stock fell almost 30% in the last quarter, the selling momentum needs to subside before the stock has any chance of drawing buyers again.Ideally, the U.S. and China resolve their trade dispute differences. If they do not, the stock will underperform. And since fundamentals are strong for the long-term, investors willing to hold the stock for more than a year should consider iQIYI at these levels.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Subscription Numbers Make iQiyi Stock Look Like a Great Buy Here appeared first on InvestorPlace.

  • Alibaba proposes one-to-eight stock split ahead of up to $20 billion HK listing
    Reuters2 days ago

    Alibaba proposes one-to-eight stock split ahead of up to $20 billion HK listing

    China's Alibaba Group Holding has proposed a one-to-eight stock split ahead of a listing in Hong Kong later this year that is expected to raise up to $20 billion. The split, to be presented to shareholders for a vote at an annual general meeting in Hong Kong on July 15, will increase flexibility in the firm's capital raising activities, including the issuance of new shares, the e-commerce giant said. Alibaba has filed confidentially for a Hong Kong listing, a person familiar with the matter told Reuters earlier this month.

  • Reuters2 days ago

    UPDATE 1-Alibaba proposes one-to-eight stock split ahead of up to $20 bln HK listing

    China's Alibaba Group Holding has proposed a one-to-eight stock split ahead of a listing in Hong Kong later this year that is expected to raise up to $20 billion. The split, to be presented to shareholders for a vote at an annual general meeting in Hong Kong on July 15, will increase flexibility in the firm's capital raising activities, including the issuance of new shares, the e-commerce giant said. Alibaba has filed confidentially for a Hong Kong listing, a person familiar with the matter told Reuters earlier this month.

  • Alibaba Plans Stock Split as It Preps Giant Listing
    Bloomberg2 days ago

    Alibaba Plans Stock Split as It Preps Giant Listing

    (Bloomberg) -- Alibaba Group Holding Ltd. plans a one-to-eight share split, as the e-commerce giant prepares for a stock sale that could be Hong Kong’s largest since 2010.China’s largest company is proposing to increase the number of ordinary shares eight-fold to 32 billion, it said in a statement. The proposal will be discussed and put to a vote at its annual general meeting in Hong Kong on July 15. If approved, the split should take place no later than July 2020.Alibaba is said to have filed for a listing in Hong Kong last week via a confidential exchange application. That sale of stock, which could raise as much as $20 billion, replenishes the online retailer’s war-chest and helps it attract investors closer to home as tensions between China and the U.S. escalate.In the Hong Kong offering, the company will seek to preserve its governance system, where a partnership of top executives has rights including the ability to nominate a majority of board members, a person familiar with the matter has said. It’s possible also that the company may not need to seek a waiver, as the city’s listing rules allow some Chinese issuers who have already listed on an established international bourse to keep their existing structures in a secondary listing.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.