BABA - Alibaba Group Holding Limited

NYSE - NYSE Delayed Price. Currency in USD
-7.72 (-4.37%)
At close: 4:01PM EDT

171.05 +1.92 (1.14%)
Pre-Market: 6:47AM EDT

Stock chart is not supported by your current browser
Previous Close176.85
Bid171.05 x 900
Ask171.38 x 1400
Day's Range169.00 - 176.23
52 Week Range129.77 - 195.72
Avg. Volume14,819,457
Market Cap421.12B
Beta (3Y Monthly)1.89
PE Ratio (TTM)48.36
EPS (TTM)3.50
Earnings DateNov 1, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est222.64
Trade prices are not sourced from all markets
  • GlobeNewswire

    TuanChe Limited Announces Strategic Partnership with Tmall Auto

    TuanChe Limited ("TuanChe" or the “Company”) (TC), a leading omni-channel automotive marketplace in China, today announced that it has signed a strategic partnership with Tmall Auto, the automotive arm of Alibaba Group’s (BABA) Tmall, China's largest e-commerce platform for brands and retailers. This partnership will further enable both TuanChe and Tmall Auto to collaborate and explore additional growth opportunities along China’s automotive transaction value chain.

  • Business Wire

    Alibaba Kicks Off 2019 11.11 Global Shopping Festival

    Alibaba Group Holding Limited (BABA) today kicked off its 2019 11.11 Global Shopping Festival, taking the annual celebration into its second decade with a focus on “new consumption,” “new business” and actively contributing to a greener society. “Our goal is to stimulate consumption demand and support lifestyle upgrade in China through new brands and products.

  • Business Wire

    Alibaba Group Will Announce September Quarter 2019 Results on November 1, 2019

    Alibaba Group Holding Limited today announced that it will report its unaudited financial results for the quarter ended September 30, 2019 before the U.S. market opens on Friday, November 1, 2019, and will hold a conference call to discuss the financial results at 7:30 a.m.

  • Understanding the Alibaba Business Model

    Understanding the Alibaba Business Model

    The Alibaba Group follows a business model that differs from e-commerce leaders in the United States and allows the firm to play the middleman to various types of buyers and sellers across the globe.

  • China Calls for Tech Collaboration While Criticizing U.S. Action

    China Calls for Tech Collaboration While Criticizing U.S. Action

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. A senior Chinese official called for governments around the world to work more closely together to regulate emerging technologies, while taking a veiled swipe at the U.S. for undermining collaboration.“The foundation for an open and shared-by-all internet is unstable,” Huang Kunming, a member of the Politburo, which is comprised of China’s 25 most-senior officials, said at a technology forum on Sunday. “Some countries restrain and suppress companies from other countries using cyber security as an excuse. Such moves cast uncertainty and even antagonism over cyberspace,” he said, without naming the U.S.Technology has come increasingly to the fore of a confrontation between the U.S. and China that began with trade and has since spread to 5G mobile networks and artificial intelligence. Washington has lobbied countries to not use gear from Huawei Technologies Co. in their 5G plans, arguing it could facilitate spying by Beijing, and the U.S. blacklisted some of China’s leading AI companies, citing their links to the detention of ethnic minorities.“We need to respect each country’s approach to Internet development, governance, policy making and their rights to participate in international governance based on mutual trust,” said Huang, who’s also head of the Communist Party’s publicity department. “We need to pay attention to each others’ interests and concerns, effectively deal with disagreements and avoid strategic misjudgment. “Huang spoke at the World Internet Conference held in the small town of Wuzhen in eastern China’s Zhejiang province. Alibaba Group Holding Ltd. Chief Executive Daniel Zhang, Baidu Inc. Chief Executive Robin Li and Western Digital Corp. Chief Executive Steve Milligan were among executives in attendance.To contact Bloomberg News staff for this story: John Liu in Beijing at;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Shamim Adam at, John LiuFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Why China’s TikTok has been drawing scrutiny from Zuckerberg and U.S. politicians

    Why China’s TikTok has been drawing scrutiny from Zuckerberg and U.S. politicians

    Chinese-owned video-sharing app TikTok, which has exploded in popularity globally, has recently come under fire for censoring content that Beijing deems unacceptable.

  • Alibaba Options Traders Betting on a Bullish Jump
    Market Realist

    Alibaba Options Traders Betting on a Bullish Jump

    In the October 18 trading session, Alibaba Group Holding Limited (BABA) stock is trading at $170.14, down 3.79% from the previous session.

  • Despite Being Rangebound, Alibaba Stock Remains a Buy

    Despite Being Rangebound, Alibaba Stock Remains a Buy

    InvestorPlace's Vince Martin recently commented that Alibaba Group (NYSE:BABA) has returned to its rangebound ways, an indication that owning Alibaba stock might not be the best idea in the immediate future. Source: BigTunaOnline / InvestorPlace - Stock Market News, Stock Advice & Trading Tips "Investors who have long waited for Alibaba stock to finally rally again might hope that history will repeat. The problem at the moment is that…it's not at all clear why or how that can happen," Martin wrote in an article published on Oct, 15.Martin believes that Alibaba stock has been unable to provide investors with a legitimate buying catalyst, and until it does, BABA stock is dead money. * 7 Reasons to Buy Canopy Growth Stock That's a perfectly reasonable assessment of Alibaba's current situation. However, I look at the e-commerce giant from a slightly different angle. A Lot Like BuffettFor me, Alibaba resembles a company like Warren Buffett's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), which has a lot of moving parts, making it very difficult for investors to value the entire business. Sure, you can break down Alibaba Group by operating business and assign a value to each of them in a sum-of-the-parts exercise. That's often done with Buffett's company, but it's really just modeling. There is no way to be 100% sure what the actual intrinsic value of Alibaba Group is. That being said, I do believe that if the company was broken into its various pieces and then each of those pieces was sold to the highest bidder, the total would be more than $459 billion, the current market cap of BABA stock. There's no way to know that for sure.But my view of Berkshire stock in the past has been similar to my opinion of BABA stock now. In April 2017, I recommended buying Berkshire, suggesting it was one of nine stocks to put in a drawer for the next decade. "Berkshire Hathaway owns hundreds of businesses; each of these firms, if sold at auction, would be worth more than the current stock price would seem to reflect," I wrote. Since my recommendation, BRK.B stock has appreciated by 30%, a decent, if not a spectacular return on investment. During that period, it, too, has been largely rangebound, struggling to stay above $200. On six occasions since April 2017, Berkshire stock has moved above $200, only to fall below this level every time, usually within weeks.Yet I wouldn't suggest selling Berkshire because there could come a day when it's broken into pieces. When that happens, investors will be grateful that they owned the shares.I get the sense that Alibaba stock could be on the same path to greatness. Valuing Alibaba StockSeeking Alpha contributor Terracotta Investments recently examined the new growth drivers for Alibaba: Product or service innovation, penetration of the lower-tier cities in China, and overseas expansion. The author broke down Alibaba's core business into eight different segments, including Retail, Wholesale, New Retail, Cainiao, Consumer Services, International, Youku, and Cloud & Others. The value he places on these businesses at the midpoint between best-case and worst-case scenario ranges from $231 billion for its retail business to a low of $3.3 billion for Cainiao, its global parcel tracking platform. Added together, the author comes up with a mid-point valuation of $171 a share for Alibaba stock, or slightly below where it currently trades. But that doesn't take into account its various investments in other businesses. Its largest such investment, worth almost $50 billion, is in Ant Financial, the digital-payment business.Together, these investments add $32 per share of value, bringing the total value of Alibaba stock to $210. After subtracting 5% for a conglomerate discount, the fair value of BABA stock comes to $200 a share. So based on the author's estimates, BABA stock is trading about 18% below its fair value. However, intrinsic value calculations shouldn't be relied upon when deciding which stocks to buy.My view is that the best stocks to own for the long haul are companies with business models that make sense, generate tremendous free cash flow, and, as the Seeking Alpha author suggested, are always focused on driving growth. Even though Alibaba stock has, much like Berkshire, been rangebound for the better part of two years, I still think it's a buy.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post Despite Being Rangebound, Alibaba Stock Remains a Buy appeared first on InvestorPlace.

  • The Zacks Analyst Blog Highlights:, Alibaba, Baidu and SINA

    The Zacks Analyst Blog Highlights:, Alibaba, Baidu and SINA

    The Zacks Analyst Blog Highlights:, Alibaba, Baidu and SINA

  • Amazon AWS Selected by Old Mutual, Expands Cloud Clientele

    Amazon AWS Selected by Old Mutual, Expands Cloud Clientele

    Old Mutual selects Amazon's (AMZN) AWS as the preferred cloud provider, which highlights the reliability of the company's cloud computing services.

  • Retail ETFs on Cusp of Breakout Ahead of Holiday Sales

    Retail ETFs on Cusp of Breakout Ahead of Holiday Sales

    Here's why retail stocks may stage a holiday spending season breakout. Shop for some trading opportunities using these three retail ETFs.

  • Invest in Alibaba Stock for the ‘What’ and not the ‘Where’

    Invest in Alibaba Stock for the ‘What’ and not the ‘Where’

    Despite the ongoing U.S.-China trade war, shares of Alibaba (NYSE:BABA) stock are currently up over 25% in 2019. Many of America's largest tech stocks would love that kind of growth. That doesn't mean that BABA stock is without its issues. The stock is still trying to claw back to its 52-week high that it achieved in June. The stock has been trading in a fairly well-defined range for the last two years.Source: Jirapong Manustrong / Looked at without the overlay of being located in China, Alibaba Group is a company American investors should love. However, the sheer size of the Chinese e-commerce giant and the ongoing trade war add a risk premium to Alibaba stock. And that risk doesn't look to be easing up anytime soon. Alibaba is an Economy Unto ItselfIt's often mentioned that Alibaba Group is like Amazon (NASDAQ:AMZN). However, BABA is also part eBay (NASDAQ:EBAY), Google (NASDAQ:GOOGL), and Fed Ex (NYSE:FDX) rolled into one. In fact, CEO Daniel Zhang told investors the best way to understand Alibaba is to think of it as an economy unto itself. That was in 2017.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday, Alibaba has a market capitalization of almost $430 billion. By 2037, the company has plans to create 100 million jobs, support 10 million profitable businesses and serve 2 billion consumers worldwide. This would make Alibaba the world's fifth-largest economy. * 10 Hot Stocks Staging Huge Reversals And that's where things get interesting. Companies like Google, Amazon, and Facebook (NASDAQ:FB) have been in the government's crosshairs for being monopolistic. As I see it, if Alibaba were a U.S. company they would trump (no pun intended) all the other FAANG stocks in being the villain of the 2020 campaign. Politicians seeking to score political points would look at Alibaba and cry monopoly. Then, like they've done with American big tech, they would look to break it up, or at the very least regulate it. BABA Stock is not Immune to Trade TroublesI don't know if American politicians are upset with Alibaba. If they are, the best they can do is to punish Alibaba via the trade war. I'm not suggesting that BABA is the target of the trade war. However, Alibaba stands to lose access to U.S. investor capital.A report from Bloomberg News said the White House was considering blocking government pension funds from investing in China. Bloomberg also reported that the White House was considering delisting Chinese stocks from American exchanges. This would be a more substantive blow.However, perhaps as part of the "trade truce" between the two countries, U.S. Treasury Secretary Steve Mnuchin said that the Trump administration "is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time."This report followed a CNBC report stating the White House was considering curbing U.S. investment in China. The move was being considered to "protect U.S. investors from excessive risk due to lack of regulatory supervision." * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) This gets to the heart of the matter. In 2013, The United States and China signed a memorandum of understanding that included a clause that allows Chinese companies to withhold certain documents from U.S. regulators. The significance is that, particularly prior to its IPO, Alibaba was being accused of irregular accounting practices. However, perhaps to appease American investors, in 2015, the Chinese government cracked down on Alibaba. This caused then CEO Jack Ma to say the company was indeed not too big to fail. What is the Real China Price that Alibaba Stock has to Pay?My InvestorPlace colleague Will Healy made the argument that Alibaba stock has already priced in the geopolitical effects of the trade war and the ongoing turmoil in Hong Kong. However, while the Chinese like to save face, so will American corporations and investors. Right now, the optics surrounding China are not favorable. Will American corporations and investors make a conscious efforts to limit their exposure to China? If, and that's a big if, it would have an undetermined effect on BABA stock.The Chinese desire to save face is cultural. The American desire to do the same is more circumstantial. In time (but in fairness, nobody can say when) the current issues surrounding China will fade. Once that occurs, American investors will almost certainly take a renewed interest in BABA.For now, uncertainty is the price that investors in Alibaba stock are going to have to pay. But if they do, the payoff in a world with less tension toward China should be immense.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post Invest in Alibaba Stock for the 'What' and not the 'Where' appeared first on InvestorPlace.

  • When doing business in China, you play by China's rules, some execs say about NBA
    Yahoo Finance

    When doing business in China, you play by China's rules, some execs say about NBA

    Some business leader say that if you choose to do business in China, you have to play by China’s rules—or expect consequences when you don't.

  • Deal Or No Deal, Investing Case for China Looks Good

    Deal Or No Deal, Investing Case for China Looks Good

    From e-commerce giant to Internet to online media company, here's how you should invest in China stocks amid the protracted trade war.

  • Alibaba (BABA) Gains As Market Dips: What You Should Know

    Alibaba (BABA) Gains As Market Dips: What You Should Know

    In the latest trading session, Alibaba (BABA) closed at $177.10, marking a +1.03% move from the previous day.

  • MercadoLibre Plans to Double Down on Its Brazilian Bet Next Year

    MercadoLibre Plans to Double Down on Its Brazilian Bet Next Year

    (Bloomberg) -- MercadoLibre Inc. will “for sure” invest more than 3 billion reais ($718 million) in Brazil next year with a focus on financial services and logistics, Chief Operating Officer Stelleo Tolda said.MercadoLibre, the e-commerce pioneer in Latin America now worth $28 billion, plans to invest more in its financial services and payments unit while opening more distribution centers and seeking partnerships to cut delivery time further, Tolda said in an interview at Bloomberg’s Sao Paulo office.The early guidance on outlays for next year follows investments of 2 billion reais in Brazil last year and 3 billion reais this year. As competition heats up from the likes of Inc. and local retailers including Magazine Luiza SA and B2W Cia Digital, MercadoLibre is defending its market share of about 33% and looking to get customers to lean heavier on its services for day-to-day shopping and payment solutions, Tolda said.“We strongly believe in the growth potential of this business, so it’s too early to focus only on profitability,” said Tolda, who met MercadoLibre’s founder Marcos Galperin at Stanford University in the late 90‘s and has been leading the Brazil business since the start, 20 years ago.MercadoLibre, based in Buenos Aires but with operations in 18 countries and shares trading in New York, is offering same-day delivery in Sao Paulo and looking to expand its next-day delivery to at least 16 cities in 2020.The firm currently operates two distribution centers near Sao Paulo and will open facilities in other regions, to speed up its delivery in a country larger than the continental U.S.Brazilian e-commerce has more than doubled to 68.8 billion reais between 2013 and 2018 and should almost double again through 2023, according to market researcher Euromonitor International.The newest focus for the company is on the fast-moving train of fintech services courting large parts of the population without bank accounts.MercadoPago, the payments platform, has been leading growth at the company. The number of transactions more than doubled year-on-year in the second quarter with the value surging 47% to $6.5 billion. That compares to $3.4 billion in gross merchandise value from the marketplace.“We see opportunities not only in payments, but also in all financial services, including credit, investments and eventually insurance,” Tolda said. “MercadoPago is also the way through which we believe we’ll have higher recurrence in people’s lives.”MercadoLibre needs to invest in marketing for the MercadoPago brand and search out companies to provide payment solutions and individual customers to use the virtual wallet. Offering payment with cards as well as with QR codes, MercadoPago has already cut deals with a wide variety of brick-and-mortar companies in Brazil such as gas stations, drugstores and the Sao Paulo subway.MercadoLibre doesn’t plan to spin off the financial products unit, which it sees as a way to increase interactivity with customers and attract shoppers into its e-commerce platform, Tolda said. Currently, the average Brazilian e-commerce consumer buys an item per month and MercadoLibre wants to intensify the frequency of purchases to at least once a week, Tolda said.The company recently opened new categories of no-gender fashion and sustainable products in its e-commerce platform to attract younger consumers. It also plans to expand next-day delivery to 16 larger cities, from eight currently, after closing a deal with the cargo unit of airline Azul SA that could help reduce its dependence on the country’s post offices.MercadoLibre has surged 93% year-to-date to $566 on the Nasdaq. That compares to 18% for Amazon, 28% for Alibaba Group Holding and 39% for EBay Inc.After raising $1.9 billion earlier this year, including a big chunk of it from PayPal Holdings Inc., MercadoLibre is focusing on investment in its core businesses rather than any bold new acquisitions, according to Tolda. Talks are ongoing with PayPal on how to collaborate in several areas despite being competitors.“Theirs is a traditional online payment model, and we’re seeing even greater potential offline than online,” with MercadoPago, Tolda said. “It’s an interesting path, this idea of ‘frenemy,’ that exists in the technology market.”To contact the reporters on this story: Fabiola Moura in Sao Paulo at;Vinícius Andrade in São Paulo at vandrade3@bloomberg.netTo contact the editors responsible for this story: Daniel Cancel at, ;Nick Turner at, Richard RichtmyerFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Ant Financial Seeks Loan Up to $3.5 Billion at Lower Rate

    Ant Financial Seeks Loan Up to $3.5 Billion at Lower Rate

    (Bloomberg) -- Ant Financial Services Group is seeking a syndicated loan of up to $3.5 billion at a lower rate, joining other Chinese technology giants in their bid to slash debt costs.The company is in talks with lenders for a $2.5 billion financing that comes with a $1 billion greenshoe option, according to people familiar with the matter. The price talk for the three-year loan margin is less than 100 basis points over Libor, said the people, who are not authorized to speak publicly and asked not to be identified. The company didn’t immediately respond to emailed requests for comment.Billionaire Jack Ma’s Ant Financial last came to the syndicated loan market in 2017, raising a $3.5 billion three-year facility that pays a margin of 135 basis points over Libor, according to Bloomberg data. The latest funding plan comes amid a refinancing spree for Asian tech firms as they take advantage of abundant liquidity from lenders in the wake of fewer loan deals in the region.Smartphone maker Xiaomi Corp. is in talks for a $1 billion refinancing at its lowest rate after Chinese social media giant Tencent Holdings Ltd. clinched its biggest and cheapest dollar-based facility in August. Ant Financial’s affiliate Alibaba Group Holding Ltd. completed an amendment and extension of its $4 billion loan in May.Ant’s new loan, if completed, will be used for general corporate purposes, the people said. The company is formally known as Zhejiang Ant Small & Micro Financial Services Group Co.\--With assistance from Apple Lam and Carol Zhong.To contact the reporters on this story: Annie Lee in Hong Kong at;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Neha D'silva at, Chan Tien HinFor more articles like this, please visit us at©2019 Bloomberg L.P.


    SoftBank Stock Has Fallen Hard on the WeWork News. Why One Analyst Says It’s Still Not a Buy.

    The Japanese conglomerate has been ravaged in recent months by a toxic brew of bad investments and terrible press. LightShed Partners lays out the bull and bear cases.

  • Needs a Real Deal Between the U.S. and China
    InvestorPlace Needs a Real Deal Between the U.S. and China

    Theoretically, it was the news that Wall Street was anxiously seeking. After a protracted trade war between the U.S. and China that left neither side as the clear victor, investors were ready to move forward with a productive relationship. Of course, one of the biggest beneficiaries would be China-based investments, such as (NASDAQ:JD) and JD stock.Source: testing / Following a series of tense negotiations between American and Chinese delegates last week in Washington, President Donald Trump made an announcement: critically, the two sides have agreed to a temporary truce, which he has termed a "phase one deal." According to a CNBC report:As part of that deal, China will address intellectual property concerns raised by the U.S. and buy $40 billion to $50 billion worth of U.S. agricultural products. In exchange, the U.S. agreed to hold off on a tariff hike set for this week.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAgain, on surface level, the news bolsters the argument for JD stock. Additionally, the apparent warming of relations opens the possibility of comebacks for major Chinese companies, such as Alibaba Group (NYSE:BABA) and Tencent (OTCMKTS:TCEHY). At least as far as stakeholders of are concerned, shares moved higher on last Friday's session, as well as on Monday. * 7 Tech Stocks You Should Avoid Now But is this announcement enough to get those on the sidelines to believe in Despite the positive implications of this truce, the markets were unimpressed, turning in a muted performance.Ultimately, I believe this was due to a lack of credibility. As we see with the wild gyrations with JD stock since spring of this year, trade negotiations have been all talk and little meaningful action. Based on the headlines, I wouldn't chase here. Is Stuck in a Cloud of UncertaintyOver the years, Chinese stocks have generated considerable interest stateside. However, the one critical factor in China's massive growth is the U.S. As the world's largest exporter, China requires a robust relationship with American corporations and consumers.Of course, with a more lasting trade deal, the optics for stock improve significantly. But what's telling is that only one side - the Trump administration - expresses definitive optimism. According to China Daily, the country's official state-owned English-language newspaper:While the negotiations do appear to have produced a fundamental understanding on the key issues and the broader benefits of friendly relations, the Champagne should probably be kept on ice, at least until the two presidents put pen to paper.That doesn't sound like a trade deal is imminent. In my view, the Chinese government is leery about President Trump's seemingly erratic behavior. At least in this regard, I don't blame them. I'm also not surprised that JD stock really hasn't moved since the end of March.Now, it's true that China has attempted to diversify its economy. In recent years, the government has introduced monetary, structural and fiscal reform to help transition an export-driven economy into a consumption-drive one. On paper, this should give China the edge in this current geopolitical conflict.But in order for this strategy to work effectively, the Chinese consumer must be strong. And that's exactly what it's not, according to Victor Shih, Ph.D., associate professor of political economy at the University of California, San Diego. In an email correspondence, Shih described that the average Chinese households "are trapped between much higher food prices and uncertainties about future income."Such a negative dynamic will put off discretionary spending. Naturally, this is a net negative for JD stock. Avoid JD Stock Until a Deal Is DoneMoving forward, we have two basic ways to play stock: gamble on the signing of a permanent trade deal or stay on the sidelines until you know for sure.If you're not a professional trader, you're better off waiting. For one thing, Trump is an unpredictable world leader. His recent actions in Syria angered Christian evangelicals, who largely represent ardent support for his administration.That shows you that Trump is a "my way or the highway" type of leader. And gambling on that is always a tough business.Second, I don't like the variables that the upcoming election poses for the trade war. As I've argued before, the president cannot look weak to his conservative base. Wavering on China, an issue which has dogged both the Obama and Bush administrations, carries significant risk.Therefore, I see more chances of things going badly for JD stock than the other way around. The smart move is to wait for this noise to fade, if it fades at all.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Needs a Real Deal Between the U.S. and China appeared first on InvestorPlace.

  • Two Years On, Alibaba Stock Still Lacks a Catalyst

    Two Years On, Alibaba Stock Still Lacks a Catalyst

    On Sept. 19, 2014, Alibaba Group (NYSE:BABA) went public. In what still is the biggest U.S. IPO of all time, Alibaba stock priced at $68. It closed on its first day at $93.89, a healthy 38% pop.Source: BigTunaOnline / On Jan. 6, 2017, Alibaba stock again closed at $93.89. It had spent some 26 months trading mostly sideways, in fact dipping below its IPO price during the early 2016 broad market correction.But this time, $94 was a buying opportunity. Within three weeks, BABA stock was above $100, and never would dip into the double-digits again. The rally continued at an aggressive pace: BABA cleared $200 in less than 18 months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Staging Huge Reversals Since then, however, the range-bound trading that marked BABA stock's first two-plus years on the public markets has returned. Monday's close of $171.16 puts the stock back to where it traded in August 2017 -- a little over 26 months ago.Investors who have long waited for Alibaba stock to finally rally again might hope that history will repeat. The problem at the moment is that, timing aside, it's not at all clear why or how that can happen. Is the Trade War to Blame for the Pressure on BABA Stock?Fundamentally, Alibaba stock looks cheap. It trades at an even 20x FY21 (ending March) consensus EPS. That low multiple comes despite the Street projecting 26% earnings growth next year, on top of a 23% increase this year.The 20x multiple doesn't even include potential optionality, most notably through the company's 33% stake in Ant Financial. That payment company has provided minimal help to Alibaba earnings so far -- but raised money at a $150 billion valuation last year. Assuming that valuation holds, Ant would account for over 10% of the current market capitalization of Alibaba Group.A common answer as to why BABA stock trades so cheaply is the trade war. Investors may well be worried that the impact to the Chinese economy from U.S. tariffs will slow that growth. Move FY21 earnings from a current consensus of $8.65 to something closer to, say, $7.50, and now Alibaba stock trades at 23x forward EPS. That's a premium to U.S. megacap tech plays like Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) despite roughly similar growth in this scenario.But I'm skeptical the trade war necessarily is the key driver here -- or that a resolution of the dispute will lead to a sustained rally in Alibaba stock. After all, BABA's one big rally on the public markets began not long after the U.S. presidential election.Surely investors heard Donald Trump during the campaign. His plans likely seemed a potential negative for Chinese companies like Alibaba; indeed, BABA stock (unlike most U.S. equities) declined the day after Trump's surprise win. And rival (NASDAQ:JD) has rallied nicely this year amid trade war worries, even if it declined much further during the late 2018 sell-off.A surprise trade deal no doubt would give Alibaba stock a nice pop. But as with the market as a whole, it seems too simplistic to argue that investors will simply send the stock up 10% or 20% once the trade dispute is resolved. It seems reasonably likely that investors expect a resolution at some point, and thus aren't pricing long-term effects into Alibaba stock. Can Earnings Drive Alibaba Stock Higher?Alibaba shareholders might well look to earnings, due in about a month, as a catalyst for the stock. After all, Alibaba historically has performed well relative to expectations. That includes solid beats with both fiscal Q4 and Q1 earnings.But those beats have done little for BABA stock. Shares actually sold off following the fourth quarter report. A post-Q1 rally faded quickly.In fact, it seems like earnings, if anything, could be a negative for BABA shares. Investors expect hugely impressive numbers -- and even when Alibaba delivers, don't always reward the company for doing so. Good numbers probably aren't enough to bring skeptics in, while bad news can shake the confidence of impatient shareholders.If bad news is punished, and good news met with a shrug, then Alibaba Group could be in a tough spot ahead of next month's release. Trust in Alibaba GroupThe broader problem I've long noted with BABA stock is that many investors just don't trust the company. The transfer of Alipay (now known as Ant Financial) from Yahoo! (now Altaba (OTCMKTS:AABA)) and Softbank (OTCMKTS:SFTBY) raised real worries about shareholder rights. The Cayman Islands VIE setup spooks other investors.The way the company is currently constituted, and managed, means that Alibaba stock is going to get a persistent discount to U.S. names. Much of the argument around the stock centers on just what that discount should be. Is there a risk that one day, Alibaba simply removes the profit rights of Alibaba stockholders? Is Alibaba's accounting trustworthy?This problem can be ameliorated over time. With Jack Ma moving on, new CEO Daniel Zhang can put his own imprint on the company. Perhaps a trade war deal will open Chinese markets -- and allow for actual ownership in the company, not in a VIE entitled to some of its profits. (This was one of the hoped-for effects of the company's now-postponed Hong Kong listing.)But in the meantime, Alibaba stock still is a no-go for many investors -- and a stock with significant questions, as Ian Bezek pointed out this summer. That's not going to change any time soon.So what moves BABA stock higher? It's hard to answer that question, but maybe that itself is the answer. It's possible a rally will simply come once the stock gets too cheap, even for more risk-averse investors. After all, the rally that began in late 2016 didn't have a spark beyond higher optimism on U.S. stock markets after 26 months of sideways trading. The best near-term hope for BABA stock might be that history repeats on both fronts.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Two Years On, Alibaba Stock Still Lacks a Catalyst appeared first on InvestorPlace.

  • Cisco Closes CloudCherry Buyout, Boosts Customer Experience

    Cisco Closes CloudCherry Buyout, Boosts Customer Experience

    Cisco Systems (CSCO) is benefiting from its expanding footprint in the rapidly growing security market. Further, partnerships and accretive acquisitions will boost the company's revenue base.

  • Alibaba Stock is a Strong Buy Now — More Than Ever Before

    Alibaba Stock is a Strong Buy Now — More Than Ever Before

    When it comes to diversified tech giant Alibaba (NYSE:BABA), being an investor comes with its share of harassment. Nevertheless, it's time to watch for a capitalist opportunity now that a key battle line has been crossed.Source: zhu difeng / For U.S. investors, profiting in Chinese stocks has been more challenging these days. Many large-cap stocks and industry leaders in China ranging from Tencent (OTCMKTS:TCEHY), to China Mobile (NYSE:CHL), China Life Insurance Company (NYSE:LFC) or China Petroleum & Chemical Corporation (NYSE:SNP) have produced lackluster or negative returns in their U.S.-listed American Depository Receipts. And certainly the trade war has been a drag on stock performance.But Alibaba stock has been different. That's not to say it's been easy. Still, the fact is BABA has gained about 23% in 2019. The return is more than the S&P 500's climb of 18% and towers above U.S. tech giant Amazon's (NASDAQ:AMZN) 13% year-to-date increase.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why is Alibaba Stock Different?So, what is the deal with shares of BABA? Alibaba stock has and continues to defeat investors' fears within this macro-charged environment. Most recently BABA stock toppled Street profit and sales forecasts in mid-August. * 7 Beverage Stocks to Buy Now To be certain, there's always going to be something or someone trying to get investors to back away from buying Alibaba despite its successes. For some that might include recent reports the U.S. is considering delisting Chinese stocks. And that threat can't be entirely ignored. Or maybe fake merchandise sales in the past or allegations of accounting shenanigans have prevented investors from taking action in BABA stock?Okay, so there's plenty of reasons not to buy BABA shares. But obviously those arguments don't include price performance. Most important, Alibaba stock continues to come out on top despite headline warnings and a challenging market for Chinese stocks. Now and with BABA crossing an important battle line on the price chart, it's time to put shares on the radar for a well-timed purchase. BABA Stock Weekly ChartAs noted above, capturing BABA stock's gains of around 23% hasn't been a walk in the park. And as expressed, bad press isn't likely to just disappear. The better news is I also don't believe Alibaba's impressive rally is finished. I see a solid entry for a risk-adjusted purchase of BABA stock.The weekly chart shows that since failing from a breakout attempt to new highs last year, Alibaba stock has established a corrective symmetrical triangle base. It's not perfectly formed with clear-cut pivots to define the pattern, but the essence of this bullish formation is there.Following last week's price action, shares of Alibaba are in position to confirm a bullish engulfing candlestick which puts BABA stock back above the 50% retracement level of the base, as well as the triangle's apex line. With stochastics in a pullback set-up in neutral territory and on the verge of signaling a bullish crossover, the situation looks all the more promising. How to Trade AlibabaI'd recommend buying Alibaba shares above $174.88. This entry waits for the BABA stock price to confirm last week's candlestick and reinforces the bias for continued upside in the bullish triangle pattern. If BABA rallies, a breakout through angular resistance near $185 might be watched for adding shares on strength and before looking to take partial profits in-between $195-$215.For containing downside exposure in Alibaba stock, I'd keep an eye on the weekly stochastics to continue to support the position and set a modified stop-loss beneath $165 for a stronger risk-adjusted exit that offers sufficient evidence off and on the price chart for closing the trade.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Alibaba Stock is a Strong Buy Now -- More Than Ever Before appeared first on InvestorPlace.

  • Paytm Nears SoftBank, Ant Fundraising at a $16 Billion Valuation

    Paytm Nears SoftBank, Ant Fundraising at a $16 Billion Valuation

    (Bloomberg) -- Paytm is close to scoring $2 billion of new financing from investors including Jack Ma’s Ant Financial and SoftBank Group Corp., a person familiar with the matter said, describing a mega-deal that will raise the temperature in India’s increasingly heated financial payments arena.Rob Citrone’s Discovery Capital Management is also in discussions to join a funding round that values the country’s top online financial services firm at $16 billion, the person said, asking not to be identified talking about a private deal. The funding will be split evenly between equity and debt and is aimed at helping Paytm fend off an influx of rivals, the person said. Talks are in their final stages but the terms could still change, the person added.If a deal is finalized, Paytm could outstrip fellow high-profile Asian startups such as Grab and Gojek in valuation. Billionaire Paytm founder Vijay Shekhar Sharma is raising capital to protect the startup’s share of a potentially $1 trillion Indian payments market from newer entrants Facebook Inc., Alphabet Inc.’s Google and Walmart Inc.-owned Flipkart’s PhonePe. Over the past year, a string of new apps have made payments increasingly easy, bringing discounts and cash bonuses to young, smartphone-savvy users.Paytm remains the leader for now. The firm has in a decade become India’s biggest digital payments brand, attracting big names in investing from Alibaba co-founder Ma and SoftBank founder Masayoshi Son to Warren Buffett. Sharma got a huge boost in 2016 after India’s government moved to eliminate most of the nation’s paper money in circulation in a bid to curb corruption. His startup, a pioneer in the country’s nascent field, saw tens of millions of consumers and hundreds of thousands of businesses sign up for digital services in a matter of months.“India is a large market,” said Kunal Pande, head of financial services risk consulting at KPMG. “Digital payments adoption is growing quickly, yet there is room for massive growth as users get comfortable transacting digitally. The large business opportunity makes it attractive for both domestic startups and large global players.”Read more: Facebook and Google Chase a New $1 Trillion Payments MarketPaytm, which is also backed by Alibaba Group Holding Ltd., declined to comment in response to emailed questions. Ant had no immediate comment when contacted, while Discovery Capital and SoftBank declined to comment.Sharma is now extending his online empire into e-commerce and banking, even as others encroach on his turf. The Indian payments market remains a chaotic field where the rules are hazy on what players can offer, yet its promise has lured a string of competitors including Indian banks, its postal service and its richest man, Mukesh Ambani.Credit Suisse Group AG now estimates that the Indian digital payments market will touch $1 trillion by 2023 from about $200 billion currently. It’s a market with huge potential: Cash still accounts for 70% of all Indian transactions by value, according to Credit Suisse, and neighboring China is far more advanced with a mobile payments market worth more than $5 trillion.Ant Financial, China’s largest provider of internet financial services and one of Paytm’s earliest backers, has said it will continue investing in mobile-payment providers around the world to boost offshore revenue and buttress itself against rising competition and tighter regulation at home.It’s not clear how much SoftBank would contribute, but the Japanese company is going through a rocky stretch. SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by the WeWork turmoil and Uber Technologies Inc.’s disappointing debut, grow skittish about startup valuations.\--With assistance from Lulu Yilun Chen, Hema Parmar and Vincent Bielski.To contact the reporter on this story: Saritha Rai in Bangalore at srai33@bloomberg.netTo contact the editors responsible for this story: Arijit Ghosh at, ;Sarah Wells at, Edwin Chan, Vlad SavovFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • SoftBank-Backed Tokopedia in Talks for Pre-IPO Funding Round

    SoftBank-Backed Tokopedia in Talks for Pre-IPO Funding Round

    (Bloomberg) -- PT Tokopedia, the online marketplace backed by the SoftBank Vision Fund and Alibaba Group Holding Ltd., has begun discussions with potential investors for what’s likely to be its final private funding round before a dual stock market listing.Indonesia’s largest online mall is considering listing shares at home as well as in another as-yet-undecided location, Chief Executive Officer William Tanuwijaya told Bloomberg News. But he wouldn’t specify a timetable for an initial public offering, citing uncertain market conditions in a trade war.Tokopedia, the country’s most valuable startup after ride-hailing giant Gojek, is focused on its home market for now but an overseas listing should raise its profile while attracting new investors. Tanuwijaya said the startup he co-founded 10 years ago is aiming to break even next year. Its gross merchandise value should triple to as much as 222 trillion rupiah ($16 billion) in 2019, he said. Revenue is growing faster than GMV, while its community of sellers rose to 6.4 million from about 5 million last year, he added.“Dual-listing is most likely to be our approach” because the Indonesia-focused e-commerce site wants its consumers and sellers to also become shareholders, the 37-year-old founder said in an interview in Jakarta. “We are now in the process of picking the right partners who believe in our vision and mission.”SoftBank Vision Fund, Alibaba Lead $1.1 Billion Tokopedia RoundTokopedia is gunning for a listing at a time many of its peers around the world are tapping the brakes. Uber Technologies Inc.’s disappointing debut and the chaos surrounding WeWork’s botched IPO have put startups under pressure to prove their business model can lead to revenue and profit growth. The co-founders of Grab, Southeast Asia’s most valuable startup and another of SoftBank’s portfolio companies, have said they’re not planning an IPO any time soon.With a looming risk of a global recession, it’s crucial for large platforms like Tokopedia to establish a sustainable business by generating profits, said Chatib Basri, a former finance minister and senior lecturer at the University of Indonesia. “When there is a disruption to a company as big as Tokopedia, which has 90 million monthly active users, it could result in a systemic effect,” he said.Tokopedia’s advantage is its presence in an Indonesian e-commerce market projected to expand from $21 billion in 2019 to $82 billion by 2025, according to a study by Google, Temasek Holdings Pte and Bain & Co. Unlike peers Alibaba’s Lazada and Tencent Holdings Ltd.-backed Shopee, which operate across Southeast Asia, Tokopedia has chosen to expand deeper into rural areas of Indonesia, an archipelago of more than 17,000 islands where online shopping is still relatively under-developed.“Indonesia’s e-commerce penetration is still 4% to 5%, so the room for growth is still big,” Tanuwijaya said.\--With assistance from Viriya Singgih.To contact the reporter on this story: Yoolim Lee in Singapore at yoolim@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at, Vlad SavovFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • 3 Large-Cap Tech Stocks to Buy in Q3 Earnings Season Amid Trade War Optimism

    3 Large-Cap Tech Stocks to Buy in Q3 Earnings Season Amid Trade War Optimism

    Associate Stock Strategist Ben Rains dives into some of the latest U.S.-China trade war updates, including President Trump's optimism. We then look at three large-cap technology stocks to consider buying during Q3 earnings season. - Full-Court Finance