How to buy Alibaba stock
The Company operates four business segments. The Core Commerce segment provides China retail, China wholesale, International retail, International wholesale, Cainiao logistics services and local consumer services through Taobao Marketplace and Tmall. The Cloud Computing segment provides complete suite of cloud services, including database, storage, network virtualization services, big data analytics and others. The Digital Media and Entertainment segment provides consumer services beyond the core business operations. The Innovation Initiatives and Others segment is to innovate and deliver new services and products.
If you’re new to trading, this guide gives you everything you need to know about buying stock in Alibaba (NYSE: BABA).
Can I buy Alibaba stock in the US?
Alibaba went public in 2014 on the New York Stock Exchange, with a $231 billion valuation that made it the biggest IPO ever at the time. Later, in 2019 it obtained a secondary listing on the Stock Exchange of Hong Kong (HKG: 9988) opening up access to investors in mainland China.
As a foreign company, Alibaba trades as an American depositary receipt (ADR) instead of an ordinary share of common stock. As the name suggests, when you invest in an ADR you are investing in a Depository Receipt, which is a security that represents the stock of foreign company held by a U.S. bank. Each ADR traded on the NYSE represents one Depository Share, held by Citi Group as Alibaba’s U.S. custodian bank. Aside from Alibaba Group, other popular Chinese ADRs include, Baidu (NASDAQ: BIDU), Bilibili (BILI), China Petroleum & Chemical Corp (Sinopec) (NYSE: SNP), China Southern Airlines (NYSE: ZNH), Didi Global (NYSE: DIDI), JD.com (NASDAQ: JD), Pinduoduo (NASDAQ: PDD). While this might sound complex, when investing in a Chinese ADR, you will notice very little difference between your ADR holding and regular U.S stock holdings.
Robinhood is one zero-free trading app in which U.S. residents can invest in Chinese ADRs. The downside of ADRs is that they can often trade at a small premium to shares of the same company listed in Hong Kong or a Chinese mainland exchange.
How do I buy Alibaba stock?
Shares of Alibaba were trading at around $84.55 as of April 26, 2022, down 57.38% in past 5 years. Before you can start purchasing Alibaba stock or another Chinese company that doesn’t have ADRs, you need need to sign up to a broker that provides access to stocks listed in Hong Kong or mainland China exchanges (or both). There are hundreds of brokers out there, and they all promise you the best trading experience. However, there are some significant differences between brokers, and you need to understand what to look for when opening and funding your trading account. You can buy and sell shares through any major online discount brokerage, such as Interactive Brokers, Charles Schwab, E*Trade, Fidelity, or TD Ameritrade. Interactive Brokers is an online platform that enables U.S. residents to invest in Hong Kong Listed stocks, along with A-Shares via the Shanghai Hong Kong Stock Connect platform. Charles Schwab and Fidelity are two online brokers that offer U.S. residents access to Hong Kong listed H-Shares.
An ETF is a collection of stocks in an index or a single sector, such as tech or finance. ETFs such as KraneShares CSI China Internet ETF (KWEB), SPDR Portfolio Emerging Markets ETF (SPEM), and SPDR S&P China ETF (GXC) are a good choice for beginners since it spreads the risk across multiple companies.
What is the target price for Baba stock?
The 48 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 157.25, with a high estimate of 267.57 and a low estimate of 72.71. The median estimate represents a +88.51% increase from the last price of 83.42.
Is Alibaba stock a buy right now?
The company’s adjusted net income declined 25% as it stepped up investments in e-commerce properties like Taobao and Lazada, but it still remains highly profitable with a profit margin of 18% in the quarter.
