How to buy Alibaba (BABA) shares in Australia

Learn how to easily invest in Alibaba shares.

Alibaba Group Holding Limited
NYSE: BABA - USD
INTERNET RETAIL
$150.18
+ $5.10 ( + 3.52%)

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Alibaba.com is a Chinese multinational technology conglomerate with investments and products related to ecommerce, AI and Internet services. Founded in 1999, Alibaba is also known for hosting the largest ecommerce marketplaces in the world: Alibaba.com, Taobao and Tmall. Alibaba is headed by founder Jack Ma, who named the company after the character, Ali Baba, in the well-known folktale collection One Thousand and One Nights.

How to buy shares in Alibaba

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Alibaba. Find the share by name or ticker symbol: BABA. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Alibaba reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$145.08, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Alibaba, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Alibaba. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Alibaba stock price (NYSE:BABA)

Use our graph to track the performance of BABA stocks over time.

Alibaba shares at a glance

Information last updated 2021-09-27.
OpenUS$144.92
HighUS$150.99
LowUS$144.44
CloseUS$150.18
Previous closeUS$145.08
Change US$5.1
Change % 3.5153%
Volume 23,832,265
Information last updated 2021-09-24.
52-week rangeUS$144.58 - US$319.32
50-day moving average US$170.4654
200-day moving average US$207.7028
Target priceUS$262.05
PE ratio 17.4774
Dividend yield N/A (0%)
Earnings per share (TTM) US$8.301

Where to buy Alibaba stock

Name Product Standard brokerage for US shares Currency conversion fee Markets
eToro (global stocks)
US$0
50 pips (US$0.50 for every AU$100 exchanged)
Global shares, US shares, ETFs
Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50.
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Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
IG Share Trading
US$0
0.70%
ASX shares, Global shares
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
US$0
50 pips (US$0.50 for every AU$100 exchanged)
ASX shares, US shares
Australia’s lowest-cost broker for ASX shares and ETFs.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
Saxo Capital Markets (Classic account)
US$4
1%
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Alibaba stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Alibaba share growth calculator

US$

Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.

Considering buying Alibaba shares?

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Alibaba price performance over time

Historical closes compared with the last close of $150.18

1 month (2021-08-27) -5.83%
3 months (2021-06-28) -34.30%
6 months (2021-03-26) -33.92%
1 year (2020-09-25) -44.60%
2 years (2019-09-27) -9.52%
3 years (2018-09-27) -9.70%
5 years (2016-09-27) 38.72%

Is Alibaba under- or over-valued?

Valuing Alibaba stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Alibaba's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Alibaba's P/E ratio

Alibaba's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 17x. In other words, Alibaba shares trade at around 17x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Alibaba's PEG ratio

Alibaba's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6148. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Alibaba's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Alibaba's EBITDA

Alibaba's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$154.2 billion (£112.5 billion).

The EBITDA is a measure of a Alibaba's overall financial performance and is widely used to measure a its profitability.

Alibaba financials

Revenue TTM US$769.3 billion
Operating margin TTM 13.75%
Gross profit TTM US$297.8 billion
Return on assets TTM 4.29%
Return on equity TTM 13.76%
Profit margin 19.25%
Book value 358.74
Market capitalisation US$396.6 billion

TTM: trailing 12 months

Shorting Alibaba shares

There are currently 49.3 million Alibaba shares held short by investors – that's known as Alibaba's "short interest". This figure is 4.4% down from 51.6 million last month.

There are a few different ways that this level of interest in shorting Alibaba shares can be evaluated.

Alibaba's "short interest ratio" (SIR)

Alibaba's "short interest ratio" (SIR) is the quantity of Alibaba shares currently shorted divided by the average quantity of Alibaba shares traded daily (recently around 29.9 million). Alibaba's SIR currently stands at 1.65. In other words for every 100,000 Alibaba shares traded daily on the market, roughly 1650 shares are currently held short.

However Alibaba's short interest can also be evaluated against the total number of Alibaba shares, or, against the total number of tradable Alibaba shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Alibaba's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Alibaba shares in existence, roughly 20 shares are currently held short) or 0.0255% of the tradable shares (for every 100,000 tradable Alibaba shares, roughly 26 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Alibaba.

Find out more about how you can short Alibaba stock.

Alibaba's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Alibaba.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Alibaba's total ESG risk score

Total ESG risk: 28.21

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Alibaba's overall score of 28.21 (as at 12/31/2018) is pretty good – landing it in it in the 37th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Alibaba is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Alibaba's environmental score

Environmental score: 4.34/100

Alibaba's environmental score of 4.34 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Alibaba is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Alibaba's social score

Social score: 15.2/100

Alibaba's social score of 15.2 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Alibaba is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Alibaba's governance score

Governance score: 10.67/100

Alibaba's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Alibaba is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Alibaba's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Alibaba scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Alibaba has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Alibaba Group Holding Limited was last rated for ESG on: 2019-01-01.

Total ESG score 28.21
Total ESG percentile 36.84
Environmental score 4.34
Environmental score percentile 4
Social score 15.2
Social score percentile 4
Governance score 10.67
Governance score percentile 4
Level of controversy 2

Alibaba share dividends

We're not expecting Alibaba to pay a dividend over the next 12 months.

Alibaba share price volatility

Over the last 12 months, Alibaba's shares have ranged in value from as little as US$144.58 up to US$319.32. A popular way to gauge a stock's volatility is its "beta".

BABA.US volatility(beta: 0.79)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Alibaba's is 0.7866. This would suggest that Alibaba's shares are less volatile than average (for this exchange).

Alibaba overview

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a social commerce platform; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; and Tmall Global and Kaola, which are import e-commerce platforms. It also operates Lingshoutong that connects FMCG manufacturers and their distributors to small retailers; Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large-scale computing, security, management and application, big data analytics, machine learning platform, and Internet of Things services. Additionally, the company operates Youku, an online video platform; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency app; and Tmall Genie, an AI-enabled smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.

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