Over the past month, the Zacks Consensus EPS estimate remained stagnant. Earlier this month, he surprised the market by resigning as CEO of the cloud business – Alibaba Cloud Intelligence Business Group. The key difference between Alibaba share trading through a long position with a CFD and buying a security is the leverage that is employed.

It also owns taobao.com, China’s largest shopping website, and tmall.com, which offers a wide selection of branded goods to China’s emerging middle class. Some suggested that plataforma de trading Nasdaq’s mishandling of Meta’s (formerly Facebook) 2012 IPO made Alibaba skittish. The company is expanding overseas with its AliExpress marketplace for oversea buyers.

  • The move comes months after Alibaba said in June that Zhang was departing as chairman and CEO of Alibaba Group to focus on the cloud intelligence unit.
  • Trudy Dai Shan, a prominent figure and early aide to co-founder Jack Ma, has relinquished her roles at several Alibaba subsidiaries, including Hangzhou Alimama Software Services Co and Taobao (China) Software Co., SCMP reports.
  • Ma’s reported first choice of exchanges, Hong Kong, frowns on control methods that aren’t based on majority ownership.
  • It could also narrow its moat against other Chinese tech giants like Tencent (TCEHY -0.57%) and Baidu (BIDU -0.97%).
  • An unnamed “top customer in the internet industry” — most likely TikTok’s parent company ByteDance — also stopped using its overseas cloud services over the past year.

Alibaba’s reach does not end there, it also runs the online payment system alipay.com, which operates like Paypal. Alibaba became a partner of the International Olympic Committee (IOC) in 2017, committing to transitioning the Olympics into the digital era. The Motley Fool has positions in and recommends JD.com and Tencent Holdings.

What does Alibaba do?

Those growth rates look decent, but Alibaba’s long-term future is still murky. Its Chinese commerce business could continue to generate single-digit growth as its cloud growth decelerates, and it still hasn’t meaningfully addressed the delisting challenges in the U.S. Alibaba’s (BABA -0.24%) stock price sank to its lowest levels in nearly five years following its fiscal 2022 third-quarter earnings report on Thursday. As of this writing, Alibaba’s stock trades at around $86, just 26% above its initial public offering (IPO) price in 2014.

  • Alibaba is expected to continue to grow its number of merchants, brands, and enterprise customers for its cloud platform.
  • Alibaba has clarified that these changes are routine business registration adjustments at the subsidiary level and do not impact the broader group structure.
  • Alibaba Group Holding’s e-commerce logistics arm has filed an initial prospectus for an initial public offering in Hong Kong.
  • Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.
  • That slowdown was partly offset by the 18% growth of Alibaba’s international commerce business, which includes its Southeast Asian marketplace Lazada, the Turkish marketplace Trendyol, and the cross-border marketplace AliExpress.
  • Trendyol, which grew its order volume 48% year over year, was the only bright spot in its overseas e-commerce business.

Trendyol, which grew its order volume 48% year over year, was the only bright spot in its overseas e-commerce business. The headwinds it faces could be exacerbated by regulatory issues, and they could persist for the foreseeable future. Therefore, in this challenging market, I’d rather buy more promising growth stocks than roll the dice on Alibaba’s recovery.

Alibaba Group Holding Ltd. ADR falls Thursday, underperforms market

These results would represent year-over-year changes of +14.99% and +4.67%, respectively. Alibaba (BABA) closed at $86.53 in the latest trading session, marking a -0.24% move from the prior day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%. The delay in Cainiao’s listing, initially expected by the end of September, adds to the market’s disappointment.

In a surprise leadership reshuffle in June, Alibaba announced that Zhang was bowing out as both CEO and chairman on Sept. 10 to focus on the cloud intelligence business. Alibaba has used that rapidly increasing online market to pioneer smartphone technology in the country, and now controls over 75% of all mobile retail in China. The company’s forex vs crypto first business was alibaba.com set up by the company’s founder Jack Ma in 1999. The website helps to connect exporters in China (and other countries) with companies in over 190 countries around the world. Although this often means learning new processes and more paperwork for foreign companies making the leap, it pays off in the long run.

The next day Alibaba started the trading session on the New York Stock Exchange with the opening price of $92.70. In June 2015, Alibaba started a joint venture Koubei with its affiliate Ant Financial Group to tap China’s fast-growing local services market, each investing approximately US$483 million into the business for an equal equity stake. The NYSE and the U.S. generally allow companies to use share classes to maintain control of publicly traded companies.

Alibaba announces IPO of logistics unit, U.S.-listed shares pare losses

Moreover, Alibaba works as a prominent venture capital company and investment corporation across the world. In 2002 the China-based e-commerce business achieved profitability for the first time. Starting from 2003 the company gradually launched its most famous brands, including retail marketplace Taobao, online payment platform Alipay, instant messaging tool Aliwangwang and a digital marketing platform Alimama.com.

How to trade Alibaba shares with CFDs

By that time Alibaba proved to be the world’s largest online e-commerce platform for small businesses. Today, Alibaba is ranked among the top 10 most valuable companies globally. Alibaba Group Holding Limited is a Chinese multinational corporation, specialising in e-commerce, retail, technology and artificial intelligence solutions. The leading e-commerce provider in China and abroad, Alibaba offers a broad range of B2B, B2C and C2C e-commerce, mobile payment and logistics services. The company also operates cloud infrastructure services and the most popular Chinese online video site Youku Tudou. Alibaba’s (BABA -0.24%) stock price plunged 11% on July 29 after the U.S.

Zhang was Alibaba Group CEO since 2015 and the group chairman since 2019. He has also been chairman and CEO of the Alibaba Cloud Intelligence Group since 2022. In January Mr Ma announced that he was stepping down as chief executive and has since handed over to a longstanding Alibaba employee, Jonathan Lu Zhaoxi. That compares with 277 million internet users in the US and 546 million in Europe. It also has a large stake in Sina Weibo, China’s version of Twitter, and the online video provider, Youku Tudou, which operates in a similar way to YouTube.

Alibaba’s former chairman and CEO, Daniel Zhang Yong, has already resigned from his former group positions. However, the overall market’s performance tempers the excitement surrounding this move. These shifts are unfolding against a comprehensive restructuring that Alibaba announced in March.

Despite its domination of the Chinese internet market, the company has not yet replicated that success on a global scale. You only need to search for the ticker symbol BABA and then you can trade the stock like any other NYSE stock. In this video, I will talk about Alibaba (BABA -0.24%), the state of the company, why this might be the biggest disconnect I’ve seen between a stock and the underlying business, the Cainiao IPO, and what will make this stock move up.

Its international retail, cloud, digital media, and innovation initiatives units aren’t profitable yet. On an adjusted earnings before interest, taxes, and amortization (EBITA) basis, its cloud business generates a very slim profit. Nonetheless, Zhang said Alibaba traders way broker introduction Cloud was still experiencing “strong growth” in the financial services and telecom sectors. Alibaba stock trading started in 2014 with its IPO in New York, which resulted in the record valuation of 25 billion – bigger than Facebook, Google and Twitter combined.