How to buy Alibaba shares

Own Alibaba shares in just a few minutes.

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Alibaba Group Holding Limited (BABA) is a leading internet retail business with stocks listed in the US. It opened the day at 267.5 after a previous close of US$251.65. During the day the price has varied from a low of USD262.7 to a high of USD269. The latest price was USD265.49 (25 minute delay). Alibaba is listed on the NYSE. All prices are listed in US Dollars.

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$306.28, 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.

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Alibaba share price

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

Alibaba shares at a glance

Information last updated 2021-01-20.
OpenUS$267.5
HighUS$269
LowUS$262.7
CloseUS$265.49
Previous closeUS$251.65
Change US$13.84
Change % 5.5%
Volume 43,409,085
Information last updated 2021-01-18.
52-week rangeUS$169.95 - US$319.32
50-day moving average US$248.5288
200-day moving average US$268.2358
Target priceUS$323.2
PE ratio 26.1504
Dividend yield N/A (0%)
Earnings per share (TTM) US$9.31

Get $0 brokerage on US stocks with trades as little as $50 when you join the world’s biggest social trading network.

eToro Share Trading (US stocks)

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Name Product Standard brokerage for US shares Inactivity fee Currency conversion fee Markets
eToro Share Trading (US stocks)
USD 0
USD 10 per month if there’s been no login for 12 months
0.50%
Forex, CFDs, US shares
Zero brokerage share trading on US stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and forex from the one account.
IG Share Trading
Finder Award
IG Share Trading
USD 0
AUD 50 per quarter if you make fewer than three trades in that period
0.70%
ASX shares, Global shares, Forex, CFDs, Margin trading
$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, forex and CFDs, plus get access to 24-hour customer support.
CMC Markets Stockbroking
USD 0
No
0.60%
ASX shares, Global shares, Forex, CFDs, Options trading, mFunds, ETFs, Warrants
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, managed funds, forex, commodities and cryptocurrencies, plus access up to 15 major global and Australian stock exchanges.
SelfWealth Share Trading (Basic account)
USD 9.5
No
0.60%
ASX shares, US shares
Trade ASX and US shares for a flat fee of $9.50, regardless of the trade size.
New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
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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 price performance over time

Historical closes compared with the close of $265.49 on 2020-10-22

1 week (2021-01-14) 9.26%
1 month (2020-12-21) 1.94%
3 months (2020-10-21) -13.79%
6 months (2020-07-21) 2.94%
1 year (2020-01-21) 19.45%
2 years (2019-01-18) 69.08%
3 years (2018-01-19) 44.25%
5 years (2016-01-21) 275.41%

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 26x. In other words, Alibaba shares trade at around 26x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

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 0.897. 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 financials

Gross profit TTM US$230 billion
Return on assets TTM 4.71%
Return on equity TTM 14.58%
Profit margin 22.55%
Book value 24.798
Market capitalisation US$672.8 billion

TTM: trailing 12 months

Shorting Alibaba shares

There are currently 37.2 million Alibaba shares held short by investors – that's known as Alibaba's "short interest". This figure is 13.6% down from 43.0 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 26.4 million). Alibaba's SIR currently stands at 1.41. In other words for every 100,000 Alibaba shares traded daily on the market, roughly 1410 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 0.01% of the outstanding shares (for every 100,000 Alibaba shares in existence, roughly 10 shares are currently held short) or 0% of the tradable shares (for every 100,000 tradable Alibaba shares, roughly 0 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 01/01/2019) 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$169.95 up to US$319.32. A popular way to gauge a stock's volatility is its "beta".

BABA.US volatility(beta: 0.99)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 0.989. 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 online and mobile commerce businesses 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 mobile commerce destination; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alibaba Health Internet platforms for pharmaceutical and healthcare products; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Tmall Global, an import e-commerce platform. It also operates Lingshoutong, a digital sourcing platform; Cainiao Network logistic services platform; Ele.me, a 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 and display marketing services; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large-scale computing, security, management and application, big data analytics, and Internet of Things and other services for enterprises; payment and escrow services; and movies, television series, variety shows, animations, and other video content. 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-powered smart speaker. The company was founded in 1999 and is based in Hangzhou, the People's Republic of China.

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