Investing in Alibaba
Alibaba is one of the fastest growing companies in recent years. It has become one of the largest online retail and technology services companies in the world in just 21 years.This company presents excellent investment opportunities. Registering large increases in its shares during 2020 of up to 39% and 51.80%. Below we bring you everything about Alibaba. From its strengths, weaknesses and track record, to how to invest in Alibaba.
What is Alibaba?
Alibaba Group Holding Limited is a multinational technology company. The main focus of the so-called Alibaba Group is digital commerce, general merchandise and technology sales.The company was founded on 4 April 1999 by Jack Ma and a group of 17 students and friends. Seeking to realise an investment idea that 21 years later, became what Alibaba is today.Alibaba’s journey led the company to become the largest seller of online products worldwide. By 2020, it was even named the fifth largest company with a focus on artificial intelligence.Selling products is not Alibaba’s only focus. It also has cloud-based services and artificial intelligence technology. It also creates a payment platform, entertainment services, internet services and much more.Some of Alibaba’s main known products are its shopping site, Alibaba Cloud, Paytm, Alipay, AliExpres, among others. The company’s global reach has ensured the success of its commerce, making it the business giant it is today.
Alibaba is a company that has grown robustly throughout its journey. It will generate revenues of $72 billion (USD) by 2020, record assets valued at $185.42 billion (USD) and total equity of $122.94 billion (USD).These revenues make NASDAQ Alibaba stock a great return on investment. Especially because the value of Alibaba stock shares have increased regularly in 2020. With variations of 39%, 24.78% and up to 51.80%.The best thing is that Alibaba is still working regularly to increase its revenues, add new products to the platform and more. Because of this, in the future revenues may increase further and Alibaba’s stock price is sure to increase even more.Buying Alibaba shares: Advantages
- It operates in the Chinese market. Providing an economical workforce with low-cost products. Positioning itself in one of the largest economies in the world. Allowing it to grow in a successful market and bring quality products to the world. Increasing the value of Alibaba shares.
- Leadership with smart decision-making. Thanks to the sales strategies of Jack Ma, the company’s founder. Although he retired as CEO of the company, he left a well-funded company with a great structure, which helps to improve the value of the stock price Alibaba.
- Strategic alliances in order to expand the product portfolio. Although the company has a variety of excellent low-cost products, its alliance to expand this portfolio has worked to its advantage. It has reached a larger market with more customers around the world.
- A steadily growing customer base. Every day, they listen, read and learn about the sales advantages of Alibaba’s low costs and high quality. This increase in the number of customers increases the value of the Alibaba share at the same time.
Buying Alibaba shares: Disadvantage
- It is too dependent on the Chinese economy. Factor that considerably affected the company’s performance for the end of 2019 and the beginning of 2020. Due to the global pandemic situation caused by COVID-19. This affected Alibaba shares at the beginning of the year, although they have since recovered.
Learning how to buy on Alibaba is quite simple. The most important thing is to choose a good broker. Below we bring you the best options in 2020.
After choosing a broker, you need to create your account. To finally load the balance and buy the Alibaba stock. To do this, follow the instructions below.
- Go to your broker’s website and look for the registration button.
- Fill in your personal, account and payment information.
- Verify your account by clicking on the link that you receive by email from the broker.
- Charge enough money to buy as many Alibaba shares as you wish.
- Search for the shares in the system. This company is listed as NYSE: BABA and SEHK: 998.
- Click on the buy Alibaba shares button and wait for the verification process.
- That’s it! Your action is now available in the portfolio.
- Read the latest Alibaba news. As this can let you know how much the company’s shares will rise or fall.
- Regularly check how much an Alibaba share is worth, especially if you own shares. So you know when to sell or buy back shares.
- Buy shares regularly as a way of saving. Allowing your money to work for you increases the amount of money you are saving.
- Learn how to analyse the price of Alibaba shares. If necessary, read about the theory of economics. In order to predict future changes in the value of Alibaba stocks.
The best way to know if you are interested in the performance of Alibaba shares is to analyse past opportunities. Here is a small example of an investment example just within 2020.This year, Alibaba’s share price has seen three significant increases. From April to July, July to October and in November 2020. These were 39%, 24.8% and 6.6% respectively.An investor who buys $1,000 – $10,000 (USD) and takes advantage of these increases will receive $1,848.80 – $18,488.05 at the end of the investment. Which demonstrates the great profitability of investing in Alibaba.