What Should Investors Know About Alibaba (BABA) Stock?

By Harris Dyer • Friday, October 10 15:27 • Permanent Link

One of the losers of today's trading session was Alibaba. Shares of the Real estate development company plunged -8.8%, and some investors may be wondering if its price of $158.39 would make a good entry point. Here's what you should know if you are considering this investment:

Alibaba has moved 57.7% over the last year, and the S&P 500 logged a change of 15.8%
BABA has an average analyst rating of buy and is -18.12% away from its mean target price of $193.45 per share
Its trailing earnings per share (EPS) is $8.67
Alibaba has a trailing 12 month Price to Earnings (P/E) ratio of 18.3 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $9.87 and its forward P/E ratio is 16.0
The company has a Price to Book (P/B) ratio of 0.36 in contrast to the S&P 500's average ratio of 4.74
Alibaba is part of the Real Estate sector, which has an average P/E ratio of 27.31 and an average P/B of 1.94
BABA has reported YOY quarterly earnings growth of 81.8% and gross profit margins of 0.4%
The company has a free cash flow of $-30210625536, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates digital retail platforms under the Taobao and Tmall names; wholesale marketplaces through 1688.com and Alibaba.com; global e-commerce platform under the AliExpress name; e-commerce platforms under the Lazada, Trendyol, and Daraz names; and consumer-to-consumer community and marketplace under the Tmall Global, Tmall Supermarket, and Xianyu names. The company also operates Cainiao, an e-commerce logistics solution; Ele.me, an on-demand delivery and local services platform; and Amap, a provider of mobile digital map, navigation, and real-time traffic information; Youku, an online video platform; and Damai Entertainment that provides content production, promotion and distribution, performance and event ticketing management, IP-related licensing and operations, cinema ticketing management, and internet data services for the entertainment industry. In addition, it provides elastic computing, storage, network, security, database, big data, cloud native, and Alibaba cloud model studio services; and hardware, software license and installation, and application development and maintenance services, as well as sells membership packages and subscriptions. Further, the company offers Freshippo, a retail platform for groceries and goods; Alibaba Health for medical and healthcare solutions; mobile games under the Lingxi Games name; UC Browser, an information service platform; Quark, an information services platform for young users; Fliggy, an online travel platform; and DingTalk, a collaboration workplace and enterprise management platform. Alibaba Group Holding Limited was incorporated in 1999 and is based in Causeway Bay, Hong Kong.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.