Alibaba Group Holding Limited is a Chinese technology company that operates well-known marketplaces like Alibaba.com, Taobao, AliExpress, Juhuasuan, and Tmall. It also offers mobile payment services through Alipay and offers cloud computing services through AliCloud. The company went public in a $25 billion IPO, which was the largest IPO ever at the time (it is a close second to Saudi Aramco now). The size and scale of Alibaba make it one of the top e-commerce stocks to buy.

Alibaba recently has been in the news because its affiliate, the Ant Group, is planning to file for a record-breaking IPO in Hong Kong and Shanghai. Ant has made loans to 500 million people in one year and has charged interest rates of around 15%. Ant also operates Alipay, the world’s largest online and mobile payments platform. Alibaba has a host of “world’s largest” honors to its name. It is among the largest internet companies in the world, it is the world’s largest retail and e-commerce company, and it holds the record for the highest sales in a day during the 2018 Singles Day shopping festival. Alibaba’s scale makes it one of the best e-commerce stocks to buy.

Alibaba reported its Q12021 earnings on August 20th, 2020. Total revenue was up 34% year-on-year to CNY 154 billion. The cloud computing segment was attributed as one of the key drivers of this revenue growth. The segment grew by 59%. In fact, Alibaba has the first-mover advantage in China over competitors like Microsoft Azure and Amazon Web Services. It is among the best cloud computing stocks 2020.

Alibaba is also a serious player in the digital media and entertainment segment. Its platform Youku’s daily active subscriber base grew 60% year-over-year during Q12021. Alibaba also operates Alipay and ticketing platform Damai. Additionally, it has a film company called Alibaba Pictures under its belt. The group is among the top entertainment stocks to buy. The ability to accumulate useful data from across marketplaces and platforms is Alibaba’s biggest strategic asset.

Alibaba Group Holding Limited (BABA)

Purchase Info

Stock Price History

Stock Price Video

Play Video

Our View

The Alibaba Group, founded by Jack Ma, is a multinational tech corporation. It is a dominant player in e-commerce, cloud computing, fintech, online entertainment, and internet services. All of these sectors are high-growth areas. Therefore, BABA has excellent long-term prospects and the projected long-term direction is upwards.
The company listed on the NYSE in 2014. Its monthly chart shows a consistent up-trend since listing. The stock has pulled back about 15% from highs touched in January 2020. The price seems to have found resistance around the 168 level, as indicated by the dashed red line and a double-bottom pattern.

More recently, BABA has moved up from 168 to 196. There is also a clear upward movement from the lower trend line in yellow, which is the area of value in this case. The stop loss can be placed below the bottom trend line and the resistance line. Position taken at $196.37. Stop loss 20.88% below at $155.36.
Short to medium term investors profit point at $244, represents 24% profit.