Investing in stocks is a risky but easy way to get higher return on investment. If you are the one who wants to make money by sitting in your drawing room and just doing some speculations. Then you are on the right page. Here we will tell you how to invest in the biggest technology giant of Asia that is Alibaba Group. This article will guide you on how you can buy Alibaba stocks and why you should trade stocks from the company?
An Overview of Alibaba Group:
Alibaba Group is a conglomerate and is also known as Alibaba Group Holding Limited and Alibaba. Com. Alibaba is a Multinational technology company. Alibaba Group was founded by Jack Ma along with other 17 people in Hangzhou, Zhejiang, china on 28th June, 1999. The group main focus is on providing Business to Consumer (B2C), Business-to-Business (B2B), and consumer-to-consumer (C2C) services through different web portals. It also deals in Cloud computing, and electronic payment services. But Alibaba is famous for its online marketplace for wholesale trading. Because when Alibaba was founded, within one month its trade rose to $5 million and then further to $20 million. After two years of its establishment Alibaba registered users raised to one million.
Alibaba was making tremendous success and in 2003 it launched its online shopping website Taobao. In 2005, Yahoo approached Alibaba for partnership and together they started two ventures. Ali baba entered into many acquisitions and partnerships year after year. In 2007 Alibaba launched Alimama, in 2008 it launched Tmall and in 2010 it launched AliExpress.
In 2014, Alibaba listed on New York Stock Exchange (NYSE) and the ticker symbol of the company is BABA. Its Initial Public Offering (IPO) $68 and it is the biggest IPO of its time. The first day trading got very well and BABA trade closed at $93.89 per share.
In 2015, the Alibaba didn’t perform very well on stock exchange and the valuation of its share dropped from $115.9 to $59.24. But in 2017, Alibaba did cross order and cross segment expansions that resulted in increase in revenue and its share price rose by 114%.
Alibaba listed on Hong Kong Stock Exchange (HKSE) in 2019, where the IPO was $HK176 and it closed at 7% higher price.
Effect of Global Pandemic on Alibaba Stock Prices
Alibaba stocks has also performed very well during the global pandemic. It has even been called the novel pandemic winner because the company’s stocks soar high to 46% while coronavirus was busy eating people and hitting economies badly. The company celebrated a virtual investor day event where they claimed that their market value is getting better during the global health crisis.
This is because pandemic has transformed the worldwide economy to a digitalized one and Alibaba made the best use of it in its e commerce and cloud services.
Role of Cloud Business in Improving Alibaba Share Value
In the ongoing fiscal year, Alibaba has generated most of its revenue and profits with the help of its cloud business. In addition to this, the company is optimistic about gaining higher profits from the same business till the end of March next year. Hence, the CEO Daniel Zheng stated that the company will focus on its cloud services as its main business.
Is it the Right Time to Invest in Alibaba’s Stock?
It is important to mention that Alibaba is a technology as well as a marketing giant of a huge country, China. Moreover, the company is running multitude businesses and offering multiple services. As the pandemic hit the globe, the world is becoming more digitalized pushing up the internet things. And not to forget, Alibaba is one of the leading online company, with the world’s most popular e commerce store, Tmall.
Alibaba stocks are expected to show more growth in the coming months and there are high chances of earning great revenues by investing in its shares. Though the company faced a drop due to the suspension of Ant Group IPO in Shanghai and Hong Kong still the investors believe that Alibaba is the most compelling name when it comes to mega cap stocks of China.
Even after experiencing a slowdown in its e commerce business company’s stocks has managed to grow with the help of its cloud business.
Therefore, traders and investors are holding high hopes in making investment in Alibaba stock in the coming months.