Alibaba Group (BABA)

Alibaba Group Holding Ltd. is a Chinese e-commerce and tech giant specialising in retail, AI, cloud computing, electronic payment systems, entertainment and internet services.

 

The company is listed on two exchanges – the New York Stock Exchange under the ticker symbol BABA tracker and the Hong Kong Stock Exchange under ALIBABA_HK.

 

Alibaba’s IPO on the US exchange in 2014 was the second largest IPO in history, with USD 25 bn raised. With the second listing in Hong Kong, the company aimed to broaden investor reach and increase the liquidity of its shares.

 

Besides the traditional metrics like revenue and net income, the Chinese e-commerce leader, just like any other company of Chinese origin, is heavily dependent on an often unpredictable and non-transparent political and regulatory environment. Strict COVID-19 policies and many unfavourable regulatory actions against Alibaba pushed down its shares price by more than 50% from their 2021 peak. And just as China announced loosening its quarantine rules, the stock price saw an immediate, although not significant, increase.

 

Another factor affecting Alibaba’s stock prices is the state of the trading relations between the US and China. Mutually beneficial policies between the two countries tend to add value to Alibaba’s stock price, while restrictions usually affect them negatively.

 

It is also important to pay attention to general market concerns like inflation and economic slowdown if you plan to trade Alibaba stocks.