Alibaba Group Holding Stock Buy Hold or Sell Recommendation
| BABA Stock | USD 74.18 1.67 2.30% |
Given the investment horizon of 90 days and your typical level of risk aversion, our recommendation regarding Alibaba Group Holding is 'Cautious Hold'. Macroaxis provides Alibaba Group buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BABA positions. The advice algorithm takes into account all of Alibaba Group's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Alibaba Group's buy or sell advice are summarized below:
Real Value 89.32 | Target Price 139.24 | Hype Value 72.5 | Market Value 74.18 | Naive Value 70.87 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Alibaba Group Holding given historical horizon and risk tolerance towards Alibaba Group. When Macroaxis issues a 'buy' or 'sell' recommendation for Alibaba Group Holding, the advice is generated through an automated system that utilizes algorithms and statistical models.
Alibaba |
Execute Alibaba Group Buy or Sell Advice
The Alibaba recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Alibaba Group Holding. Macroaxis does not own or have any residual interests in Alibaba Group Holding or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Alibaba Group's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Alibaba Group Trading Alerts and Improvement Suggestions
| Alibaba Group generated a negative expected return over the last 90 days | |
| Alibaba Group is unlikely to experience financial distress in the next 2 years | |
| Latest headline from aol.com: US is reviewing risks of Chinas use of RISC-V chip technology |
Alibaba Group Returns Distribution Density
The distribution of Alibaba Group's historical returns is an attempt to chart the uncertainty of Alibaba Group's future price movements. The chart of the probability distribution of Alibaba Group daily returns describes the distribution of returns around its average expected value. We use Alibaba Group Holding price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Alibaba Group returns is essential to provide solid investment advice for Alibaba Group.
| Mean Return | 0.09 | Value At Risk | -3.91 | Potential Upside | 3.34 | Standard Deviation | 2.19 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Alibaba Group historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Alibaba Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Alibaba Group is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alibaba Group Holding backward and forwards among themselves. Alibaba Group's institutional investor refers to the entity that pools money to purchase Alibaba Group's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Hsbc Holdings Plc | 2023-12-31 | 7.7 M | Loomis, Sayles & Company Lp | 2023-12-31 | 5.2 M | H&h International Investment, Llc | 2023-12-31 | 5 M | Blackrock Inc | 2023-12-31 | 4.9 M | Norges Bank | 2023-12-31 | 4.2 M | Arrowstreet Capital Limited Partnership | 2023-12-31 | 4.2 M | Lazard Asset Management Llc | 2023-12-31 | 4.2 M | Bank Of America Corp | 2023-12-31 | 4 M | Ubs Asset Mgmt Americas Inc | 2023-12-31 | 3.8 M | Primecap Management Company | 2023-12-31 | 18.2 M | Dodge & Cox | 2023-12-31 | 17.2 M |
Alibaba Group Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 147.5B | 10.5B | (129.1B) | 2.2B | 2.5B | 2.4B | |
| Free Cash Flow | 135.2B | 188.6B | 89.5B | 165.4B | 190.2B | 199.7B | |
| Depreciation | 42.4B | 47.9B | 39.5B | 46.9B | 54.0B | 56.7B | |
| Other Non Cash Items | (51.9B) | (63.3B) | 80.5B | 37.4B | 43.1B | 45.2B | |
| Dividends Paid | 0.0 | 12.1B | 38.4B | 22.8B | 26.2B | 17.1B | |
| Capital Expenditures | 45.4B | 43.2B | 53.3B | 34.4B | 39.5B | 41.5B | |
| Net Income | 140.4B | 143.3B | 62.2B | 72.8B | 83.7B | 47.9B | |
| End Period Cash Flow | 346.0B | 356.5B | 227.4B | 229.5B | 263.9B | 277.1B | |
| Change To Netincome | (6.2B) | (32.7B) | 42.4B | 41.1B | 47.2B | 49.6B | |
| Investments | (60.5B) | (244.2B) | (144.4B) | (135.5B) | (122.0B) | (128.1B) | |
| Net Borrowings | (4.2B) | (16.0B) | 31.3B | (1.5B) | (1.4B) | (1.3B) |
Alibaba Group Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Alibaba Group or Internet & Direct Marketing Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Alibaba Group's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Alibaba stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.0003 | |
β | Beta against NYSE Composite | 0.94 | |
σ | Overall volatility | 1.98 | |
Ir | Information ratio | -0.0026 |
Alibaba Group Volatility Alert
Alibaba Group Holding currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alibaba Group's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alibaba Group's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Alibaba Group Implied Volatility
Alibaba Group's implied volatility exposes the market's sentiment of Alibaba Group Holding stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Alibaba Group's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Alibaba Group stock will not fluctuate a lot when Alibaba Group's options are near their expiration.
Alibaba Group Fundamentals Vs Peers
Comparing Alibaba Group's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Alibaba Group's direct or indirect competition across all of the common fundamentals between Alibaba Group and the related equities. This way, we can detect undervalued stocks with similar characteristics as Alibaba Group or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Alibaba Group's fundamental indicators could also be used in its relative valuation, which is a method of valuing Alibaba Group by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Alibaba Group to competition |
| Fundamentals | Alibaba Group | Peer Average |
| Return On Equity | 0.0821 | -0.31 |
| Return On Asset | 0.0443 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.12 % | (5.51) % |
| Current Valuation | 1.17 T | 16.62 B |
| Shares Outstanding | 2.43 B | 571.82 M |
| Shares Owned By Insiders | 0.01 % | 10.09 % |
| Shares Owned By Institutions | 14.77 % | 39.21 % |
| Number Of Shares Shorted | 41.56 M | 4.71 M |
| Price To Earning | 112.48 X | 28.72 X |
| Price To Book | 1.24 X | 9.51 X |
| Price To Sales | 0.19 X | 11.42 X |
| Revenue | 868.69 B | 9.43 B |
| Gross Profit | 314.36 B | 27.38 B |
| EBITDA | 122.39 B | 3.9 B |
| Net Income | 72.78 B | 570.98 M |
| Cash And Equivalents | 193.09 B | 2.7 B |
| Cash Per Share | 185.57 X | 5.01 X |
| Total Debt | 161.35 B | 5.32 B |
| Debt To Equity | 0.18 % | 48.70 % |
| Current Ratio | 1.77 X | 2.16 X |
| Book Value Per Share | 404.24 X | 1.93 K |
| Cash Flow From Operations | 199.75 B | 971.22 M |
| Short Ratio | 3.05 X | 4.00 X |
| Earnings Per Share | 5.34 X | 3.12 X |
| Price To Earnings To Growth | 0.55 X | 4.89 X |
| Target Price | 106.37 | |
| Number Of Employees | 219.26 K | 18.84 K |
| Beta | 0.46 | -0.15 |
| Market Capitalization | 176.46 B | 19.03 B |
| Total Asset | 1.75 T | 29.47 B |
| Retained Earnings | 599.03 B | 9.33 B |
| Working Capital | 312.62 B | 1.48 B |
Alibaba Group Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Alibaba . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Alibaba Group Buy or Sell Advice
When is the right time to buy or sell Alibaba Group Holding? Buying financial instruments such as Alibaba Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 21.8B | 12.5B | 14.4B | 13.4B | Total Assets | 1.7T | 1.8T | 2.0T | 2.1T |
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In addition to having Alibaba Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Alibaba Group Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Alibaba Group Holding information on this page should be used as a complementary analysis to other Alibaba Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Alibaba Stock analysis
When running Alibaba Group's price analysis, check to measure Alibaba Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alibaba Group is operating at the current time. Most of Alibaba Group's value examination focuses on studying past and present price action to predict the probability of Alibaba Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alibaba Group's price. Additionally, you may evaluate how the addition of Alibaba Group to your portfolios can decrease your overall portfolio volatility.
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Is Alibaba Group's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alibaba Group. If investors know Alibaba will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alibaba Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.68) | Dividend Share 6.869 | Earnings Share 5.34 | Revenue Per Share 363.638 | Quarterly Revenue Growth 0.051 |
The market value of Alibaba Group Holding is measured differently than its book value, which is the value of Alibaba that is recorded on the company's balance sheet. Investors also form their own opinion of Alibaba Group's value that differs from its market value or its book value, called intrinsic value, which is Alibaba Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alibaba Group's market value can be influenced by many factors that don't directly affect Alibaba Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alibaba Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alibaba Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alibaba Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.