why alibab stock has never done any good

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Should you invest in Alibaba stock?

“Furthermore, growth in the U.S. is part of Alibaba's long-term strategy and is already being impaired by restrictions on Chinese investments. “Alibaba shares are a good way to invest in the growth of the Chinese economy, but are also very much at risk from escalating trade tensions,” Luria says.

Is Alibaba stock making progress in the trade war?

As the U.S.-China trade war has ebbed and flowed over the past year, so has Alibaba (NYSE: BABA) stock. BABA stock has bounced wildly over the past 12 months. Ultimately, though, Alibaba stock has not made any progress. The price of Alibaba stock in late August 2018 was $175. The closing price on Friday was $175.

What are the risks associated with Alibaba stock?

One of the most glaring risks with Alibaba stock, however, is the ongoing U.S.-China trade war, which has lasted longer than many analysts initially expected. That said, if and when a resolution is reached, BABA will have even greater potential than it does today.

How long will Alibaba stock stay at $175?

The price of Alibaba stock in late August 2018 was $175. The closing price on Friday was $175. In other words, as the trade war has hung over Alibaba stock, the shares have gone nowhere. Alibaba stock has been volatile, but it’s been flat. The big question now is: how long will it continue on that path? The answer is, not much longer.

Why is Alibaba stock doing so poorly?

The Alibaba (BABA) share price has struggled so far in 2022, falling by more than 22% year-to-date (YTD), as the Chinese e-commerce and technology giant has faced renewed Covid-19 lockdowns, ongoing scrutiny from regulatory authorities in China and a bearish environment for technology stocks with investors in risk-off ...

Is Alibaba still a good investment?

Stock Market ETF Strategy And How To Invest For its current fiscal year 2022, Alibaba is expected to earn $7.42 a share, down 25% compared to 2021. But growth is expected to pick up in 2023, up 6% to $7.88. Click here to the top-rated stocks in the group.

Will Alibaba stock ever go up?

The market consensus sees Alibaba growing its top line by a +13.5% CAGR from RMB859 billion (forecasted) in fiscal 2022 to RMB1,257 billion in FY 2025, as per the sell-side consensus estimates sourced from S&P Capital IQ.

Why is Alibaba stock dropping so fast?

Alibaba (NYSE:BABA) has fallen over 20% since February as declining profit margins proved to be everything the market doesn't want in the current environment. There was a glimmer of hope this week when the Chinese government vowed to support the equity markets.

Can Alibaba stock recover?

As a result, the stock is expected to slowly recover to a price target of $180 in the next two or three years, as the Chinese government slowly regains global investors' trust over time.

Is Alibaba undervalued now?

The stock is currently trading at just $114 even after the rebound. Thus, the stock is 42% undervalued without considering the regulatory risk. The GF Value Line, a unique intrinsic value estimate from GuruFocus, rates the stock as significantly undervalued.

Will Alibaba recover 2022?

We are even more assured now that BABA could be approaching its inflection point towards its recovery and potentially see BABA recovering to at least $150 by the end of 2022. That's an implied upside of 67% from the current levels, on NTM EBIT multiple of about 29x.

Where will Alibaba stock be in 2025?

According to the latest long-term forecast, Alibaba price will hit $125 by the end of 2022 and then $150 by the end of 2023. Alibaba will rise to $250 within the year of 2025, $300 in 2027 and $400 in 2032.

Is Alibaba bigger than Amazon?

Alibaba is smaller than Amazon, but it's only growing a slightly faster rate. Alibaba's revenue rose 41% in fiscal 2021 (which ended in March), or just 32% after excluding its takeover of the hypermarket operator Sun Art. Alibaba expects its revenue to rise 20% to 23% in fiscal 2022.

What is Alibaba stock prediction?

Based on 19 Wall Street analysts offering 12 month price targets for Alibaba in the last 3 months. The average price target is $162.34 with a high forecast of $276.00 and a low forecast of $115.00. The average price target represents a 42.80% change from the last price of $113.68.

Is Alibaba a good company?

Alibaba is one of the largest e-commerce portals in China — and perhaps the world — so it's definitely legitimate. The suppliers who sell through it, though, are another story. While the majority of them are there to do business honestly, there have been some cases of them scamming their customers.

Does Alibaba stock pay dividends?

Alibaba does not currently pay a dividend to shareholders. However, in contrast to other high-growth tech stocks that do not pay dividends and might never, such as Netflix (NFLX), Uber (UBER), and Lyft (LYFT), Alibaba is highly profitable and generates positive free cash flow.

When did Alibaba go public?

The online-only retailer, founded in 1999, went public in the U.S. in 2014. Alibaba's initial public offering was the largest ever IPO at the time, with a market cap of $231 billion. Anyone who bought into the BABA IPO and held has done quite well since then, as BABA now carries a market capitalization of nearly $460 billion.

How many customers does Alibaba have in 2024?

Mobile monthly active users ticked even higher, growing by 30 million in just three months, reaching 785 million. The company aims to serve more than 1 billion customers by 2024, and it looks as if it’ll reach that goal. Alibaba's growth, however, doesn’t solely originate from its core e-commerce business segment.

Is Alibaba a cloud company?

Like Amazon, Alibaba’s once-small cloud division has burgeoned into a major part of its business, and a leading provider for its native country’s top enterprises. In the most recent quarter, no other segment outside of its core commerce business was as large as cloud computing.

What is Alibaba's business?

To be sure, Alibaba is one of the world’s most ambitious companies, expanding its businesses in cloud computing, digital media and AI. Currently, more than 80% of Alibaba’s revenue comes from its retail and e-commerce businesses, which subsidize the company’s emerging business units that include everything from online gaming and smart speakers to web browsers, streaming services and digital payment platforms.

Is Alibaba stock good?

Despite geopolitics, trade tensions and the speculative nature of many publicly traded Chinese companies , Alibaba stock is too good an investment opportunity to be ignored. The company is involved in too many leading edge technologies and growth areas to be discounted because of forces that are largely beyond the control of management.

Why is Alibaba bullish?

Here are five less important reasons to be bullish on Alibaba stock in both the near-term and the long-term. 1. Alibaba Is Adding New Revenue Streams. Alibaba Group is so much more than an e-commerce company. It’s a cloud company, a media company, and more recently, it’s become a data-as-a-service company.

What was the price of Alibaba in August 2018?

The price of Alibaba stock in late August 2018 was $175. The closing price on Friday was $175 . In other words, as the trade war has hung over Alibaba stock, the shares have gone nowhere. Alibaba stock has been volatile, but it’s been flat.

Is Alibaba's margins improving?

This situation has persisted because its margins have dropped as the company has spent an arm and a leg to fuel its strong growth. Now Alibaba Group is reducing some of that spending.

Is Alibaba open to US buyers?

Up until now, Alibaba’s marketplace has been open to U.S. buyers, but closed to U.S. sellers. That just recently changed. Alibaba is now letting Americans sell products on its platform. Many American sellers are anxious to sell products to China’s huge consumer class.

Is low interest rate good for growth?

Interest rates around the world are at all-time lows. Although that means investors are pessimistic about long-term growth prospects, ironically, low rates are good for growth stocks. Growth stocks – like Alibaba stock – are more attractive in a low-interest world in which safe investments produce very little return.

Is Alibaba stock good?

The Technicals of Alibaba Stock Look Good. Despite the trade war, BABA stock has formed a solid uptrend in 2019, based on consistently higher lows. This uptrend appears alive and well, despite the escalation of the trade war in August.

NYSE: BABA

Alibaba's stock has been on a tear, but it's still cheap. Image source: Alibaba.

1. Alibaba's revenue growth is strong

Alibaba's revenue growth has been the highlight of the past two years, with each of the eight quarters showing over 50% growth.

2. Alibaba's New Retail initiatives are taking off

Alibaba executive chairman Jack Ma believes he can help save brick-and-mortar stores by giving them a "New Retail" makeover that combines the best of offline and online shopping.

3. Alibaba's international growth is heating up

Another area that holds huge growth potential for Alibaba is international markets. For the past fiscal year ended in March, Alibaba's international commerce retail revenue shot up 94% year over year to $2.3 billion.

4. Alibaba still has plenty of room to run in China

With a population of 1.4 billion people who are still gradually moving to online shopping, China still holds big potential for Alibaba. Last year, China as a whole saw an increase of 32.3% in online sales to $1.1 billion, according to the China Ministry of Commerce.

5. Alibaba's cloud segment is on fire

Alibaba's cloud segment has shown year-over-year revenue growth of over 100% in 10 of the past 12 quarters. For the year ended this past March, Alibaba Cloud's revenue was up 101% to $2.1 billion.

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