Those in the know understand the advantageous position held by Alibaba. As one of China’s largest companies, Alibaba has its touch on virtually everything. This includes payment gateways, warehousing, manufacturing, and more.
Alibaba stock is your gateway to the East.
As of March 2019, Alibaba is nearing its all-time high’s. But… is this the best time to jump on board with what could be the Amazon killer? Keep reading to find out.
Alibaba Stock: Overview
Alibaba is just short of a conglomerate, with a presence in almost every facet of life in China. The company continues growing its reach in the West through its many investments.
Most know Alibaba through its e-commerce portals:
- com
- AliExpress
- Taobao
- Tmall
These online platforms helped the giant earn over $250B in 2018 alone. On Singles Day, one of China’s shopping holidays, Alibaba raked in over $30B within 24-hours. Yet, it doesn’t end there.
Alibaba is present through several channels, including:
- Ai and cloud computing via Alibaba Cloud
- FinTech via Alipay and WorldFirst
- Live entertainment via Digital Media and Entertainment Group
…and just about any other online service one can think of.
Led by Jack Ma, Alibaba is the Amazon of the East. But, unlike Amazon, they control the distribution, sales, and marketing channels. And, has the backing of the Chinese government (for good or worse).
Investing in Alibaba: Main Considerations
Should you invest in Alibaba stock? Like any investment advice, it depends.
Alibaba is a power play for those championing globalization. After all, Alibaba accounts for more than half of all China ecommerce market. The company dwarfs its main competitor, JD.com.
Yet:
Geopolitics has a grip on the Chinese economy due to American tariffs. The tariffs caused the baba stock price to drop, although it’s now rebounding hard. How the finalized tariffs play out will play a role in Alibaba’s growth.
Let’s consider the positives of Alibaba:
- Growth — Heavily invested in China, India, and SEA, with plans to expand throughout Europe and the U.S.
- Technologies — Exploring everything from blockchain and AI to media streaming and automation
- Supply Chain — Has its presence in warehousing to the payment gateways consumers use to buy goods
Alibaba sees the value of investing in innovation. The company allocates billions toward experimental ideas and company acquisitions. This, as a whole, makes them present in most industries for the foreseeable future.
Now let’s consider the negatives of Alibaba:
- Trade Conflicts — Weighing trade agreements and tariffs could disrupt global commerce
- Manufacturing Activity — Manufacturers in China began showing signs of a slowdown
- Guidance — Lower projected revenue expectations and guidance, again playing into trade conflicts
Despite drawbacks, Alibaba has positioned itself as a global market leader. If they close the gap, they will give Amazon a true run for their money.
Going Long on Alibaba Group
If you want an incredible exposure to the Chinese market then look no further than Alibaba stock. Yet, at the time of this writing, do factor the ongoing trade disputes between the U.S. and China.
Interested in stock trading? Now, more than ever is the perfect time to begin investing. See our guide to becoming a stock investor for the essential details.
