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- 1. How to buy Alibaba (BABA) stock in 2023
- 2. Where to buy Alibaba stock?
- 3. How to buy stock in Alibaba in 3 simple steps
- 4. Compare the best platforms to buy Alibaba stock
- 5. Fundamental analysis of Alibaba shares
- 6. Is Alibaba a good investment for me?
- 7. How to sell Alibaba stock
- 8. Should I buy Alibaba stock now?
- 9. FAQs
How to buy Alibaba (BABA) stock in 2023
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A big part of learning how to buy Alibaba stocks is finding the best place to make your investment. Alibaba stocks are available to invest in through an online stock broker, and it usually takes just a few minutes to buy shares in Alibaba when following our step by step guide.
Where to buy Alibaba stock?
The best stock trading platform to use to buy Alibaba stock is eToro .
Based on our research, we’ve ranked the top three brokers where you can buy Alibaba shares, according to how easy they are to use, how low their fees are, their safety and security rating, and average customer reviews.
77% of retail CFD accounts lose money.
Read more about how we test, rank & review platforms.
How to buy stock in Alibaba in 3 simple steps
Buying Alibaba stock is quick and easy, all you need is an internet connection and a copy of your photo ID. Here’s how to do it.
Step 1. Sign up to eToro
eToro is the best stock trading platform for beginners. Fill in your details to set up a brokerage account and attach a copy of your ID to verify it.
77% of retail CFD accounts lose money.
Step 2. Make a deposit
Transfer money to your new account with your credit or debit card, a bank transfer, or an alternative payment method, like PayPal. The minimum deposit is £10.
Step 3. Buy Alibaba shares
Search for Alibaba using the ticker, BABA. Click the ‘trade’ button and enter the details of your investment, such as how many shares you want to buy or how much you want to spend. Hit ‘trade now’ to invest in Alibaba and complete your purchase.
It’s as easy as that! You can buy Alibaba shares in just 10-15 minutes and now you’re a Alibaba shareholder.
Compare the best platforms to buy Alibaba stock
Fundamental analysis of Alibaba shares
What is Alibaba’s total worth?
Alibaba’s total net worth is $233.5 billion. This is its total market capitalisation, calculated by multiplying the number of shares outstanding on a stock exchange by the current share price.
How has Alibaba’s share price performed in recent years?
The current Alibaba stock price today is $85.92, which is 72% below its all time high of $319.32, which it reached on 27 October, 2022.
Overall, BABA is down 50.56% over the last five years. The BABA share price is down 27% in 2023 with a 52 week high of $138.70 and a 52 week low of $58.01.
What is Alibaba’s EPS?
Alibaba’s EPS is $0.75. EPS stands for earnings per share and is calculated by dividing Alibaba’s net profit by the number of shares outstanding. It gives you an idea of how valuable a company is.
What is the Alibaba P/E ratio?
Alibaba’s P/E ratio is 114.56. The P/E, or price to earnings ratio, tells you how much you would have to pay per share for $1 of Alibaba’s earnings.
It is calculated by dividing the share price by the earnings per share. You can use Alibaba’s earnings estimates to predict its future (or forward) P/E and set a target price you think the stock can reach.
What is Alibaba’s dividend yield?
Alibaba’s dividend yield is 0%. The dividend yield tells you how much of Alibaba’s share price it gives back to shareholders in dividend payments every year. Alibaba does not pay a dividend.
Is Alibaba stock a buy or sell?
The indicator below shows you live technical ratings for Alibaba stock on time frames from one minute to one month.
It tracks a selection of key technical indicators on live market data, including moving averages, relative strength index (RSI), oscillators, and momentum.
This indicator should be used when you research Alibaba to help you decide whether to buy Alibaba shares. Past performance is no guarantee of future results. It is not investment advice or a recommendation from Invezz to buy this stock.
Is Alibaba a good investment for me?
The right answer is different for each person, so here is some information to help you decide whether to buy stocks in Alibaba.
- Alibaba has a 48% share of the Chinese eCommerce market. The Chinese eCommerce market is huge and has sales of approximately $1.4 trillion annually. Alibaba’s share of this market is nearly half, which is considerably higher than JD.com (16%) in second place.
- Its revenue is growing at a slower rate than in previous years. Alibaba makes billions in revenue annually and in 2022, made $134 billion. Although, while it is generating large amounts of money, growth is slowing and in 2021, revenue grew by 10%, the lowest rate since it became a public company in 2014.
- Alibaba’s business is diverse. While most people may know Alibaba as an eCommerce business, the company is a lot more diverse. It operates cloud computing, retail, and logistics businesses, among others. It also owns 13 major companies including Ali Express.
- The Chinese government and Alibaba have a strained relationship. The biggest factor to consider before investing is the Chinese government’s attitudes towards Alibaba and the technology industry in particular. It’s a government that can be unpredictable and it’s vital to be aware of current policies that you can consider before investing.
- BABA’s stock price has fallen significantly in the past few years. Alibaba’s share price has been in free fall since hitting its all-time high in 2020. Since then, BABA stock is down 70% and, in 2020, started trading below its IPO price. Low prices could be seen as a ‘discount’ and provide a good entry, especially if you’re bullish on the stock.
It’s always a good idea to think about any potential risks there might be as well. Use this summary of Alibaba’s pros and cons before you make a final decision on whether to buy Alibaba stock.
- Alibaba’s business is diverse
- It has a 48% market share of the Chinese eCommerce market
- Alibaba owns 13 major companies in China
Are there other ways to buy shares in Alibaba?
Yes, you can invest in Alibaba stock in a few different ways. One option is to buy stock in Alibaba directly through an investment platform as laid out above, while another popular choice is to invest in a fund.
Mutual funds provide instant diversification to your investment portfolio by investing in lots of companies at once. You can invest in a Nyse Index fund to get exposure to Alibaba, or choose a technology ETF.
Another option is to use a social copy trading platform, like eToro . Find a trader who you like and copy their Alibaba trades directly to your own account.
This can be a good investment strategy for beginners and a way to learn how to buy Alibaba shares from someone with more experience.
What are the fees for investing in Alibaba stock?
It depends on the stock broker. Some platforms charge a flat fee per trade, others charge a commission as a percentage of the total trade value each time you buy Alibaba stocks.
Consider that there may be other costs to trading too. Other fees can include deposit and withdrawal fees, or inactivity fees if you don’t use your account for three months or more.
These are the trading platforms that charge the lowest fees for buying stocks in Alibaba.
|Trading platform||Trading fees|
|Degiro||$0 (US) / £1.75 (UK)|
How to sell Alibaba stock
When you decide the time is right to sell and lock in some profit (or cut your losses), log into your broker account and navigate to your portfolio.
From there, find your Alibaba stock and you’ll see a ‘sell’ option next to it. Click that to set the details of the trade (you don’t have to sell all your stocks at once) and sell back to cash.
Should I buy Alibaba stock now?
It’s your investing goals and style that define whether now is a good time to buy. The current Alibaba stock price plays into it but ultimately it depends on your investment horizons.
- If you’re a short term trader: the goal is to make money by buying and selling stocks regularly to secure a profit or avoid a loss. That can mean trading hourly, daily, or weekly but the focus is always on the near future. Traders learn how to buy stocks in Alibaba based on short term technical analysis and don’t hold shares for a long time, so any time can be a good time to buy BABA.
- If you’re a long term investor: you’re more interested in long term price appreciation than whether a stock is up or down on any given day. The important thing is finding a stock with a strong foundation where you think the share price will be up over a period of months or years. If you think Alibaba’s fundamentals are solid then the best time to invest in Alibaba stock is after a dip or a pullback in price.
Most new traders sit somewhere between these two positions. You don’t want to actively trade Alibaba stock all hours of the day but you don’t want to wait years for a return either.
Either way, following BABA price news and analysis will help you decide when to dip your toe into the market.
There is no perfect way to value a stock. You can use financial metrics like the P/E ratio to compare share prices among Alibaba and its competitors, where a higher ratio indicates that a stock is more expensive. But lots of different factors play into Alibaba’s share price and the ‘right’ valuation is often a matter of opinion.
It depends on where you live but you do normally have to pay capital gains tax any time you make money from investing in Alibaba.
Capital gains tax is often charged at 10-15% of your profit but there are ways to limit the amount you have to pay, by using tax-friendly stock market investment vehicles and writing off losses.
Speak to an accountant or a tax professional and check the tax laws where you live to find out more.
Alibaba’s ticker symbol is NYSE:BABA. A ticker symbol, or stock code, is a publicly traded company’s unique identifier so that you can find them on stock exchanges.
No, Alibaba does not pay a cash dividend.
Yes, Alibaba has a medium-risk ESG rating, according to Sustain Analytics. The company is involved in several initiatives better to handle environmental, social, and governance issues.
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