Alibaba Stock Analysis 2024 | Is BABA a Buy or Stay Away?

Alibaba Headquarters

Alibaba Group Holding Limited, commonly known as Alibaba, is a Chinese multinational conglomerate specializing in e-commerce, retail, and technology. As an avid follower of the company's performance and prospects, I continue to believe that BABA's shares will perform well going forward, and I maintain a favorable view of the company's cloud business segment and shareholder capital return policy.

The Good Part

  • Alibaba has experienced a remarkable revenue increase over the past decade, growing by 1.38K% from $8.53B to $126.61B.
  • The company's equity growth rate is equally impressive at 2.16K%, indicating positive signs of growth.
  • Alibaba is undervalued compared to its Chinese internet peers. Its lower P/E multiple in the market is evidence of this. BABA's P/E ratio is 10.12x, while its competitor Pinduoduo (PDD) Inc. has a P/E ratio of 30.7x.
  • Furthermore, Alibaba's debt-to-equity ratio has decreased from 0.94 to 0.39 over the last decade, showcasing the company's efforts in reducing debt.
BABA Stock Income Statement

The Concerning Part

  • Alibaba's profit margin has slipped over the past decade, reducing by -81.01% from 43.95% to 8.35%. While this is concerning, it should be noted that Alibaba's revenue growth and equity growth rates have far outpaced the profit margin reductions. If the company sustains its growth rates, it may be able to reverse the declining profit margin in the future.
  • Ongoing geopolitical tensions between the U.S. and China pose a risk to Alibaba's stock. Further trade conflicts, restrictions, or sanctions could impact international business and decrease stock value. Investors should consider this risk when evaluating BABA shares.

Dividends & Buy Backs

In a firm dedication to rewarding shareholders, Alibaba has actively pursued share buybacks and established a dividend program. These efforts are poised to potentially bolster the stock price in 2024.

Analysts Rating

Analysts are forecasting favorable returns for Alibaba's shares. Here are ratings provided by top analysts.

  • Colin Sebastian's price target for BABA is $142, with an average return of 17.44%.
  • Joyce Ju has set a price target of $137, indicating an average return of 17.79%.

These projections support the belief that Alibaba's shares will perform well in the future.


I continue to believe that Alibaba's shares will perform well going forward, and I think it's a good time to buy BABA's shares. The company's financial analysis shows a substantial increase in revenue and equity growth rate in the past decade, along with a debt reduction. Additionally, Alibaba's commitment to rewarding shareholders through share buybacks and dividends indicates that it values its loyal shareholders. While the declining profit margin is concerning, it is overshadowed by the growth rates and positive projections by analysts.