Why is it good to invest in Alibaba?

Why is it good to invest in Alibaba?

The company is also very profitable. It converted $3.2 billion of its Q1 revenue into free cash flow and now has $72 billion in cash, equivalents, and short-term investments on its balance sheet. This gives Alibaba a ton of financial flexibility to start/grow new business segments or acquire emerging competitors.

Is Alibaba a public company?

Alibaba (NYSE:BABA) is arguably China’s most well-known tech company. Alibaba went public in September 2014 and it remained a solid growth stock over the next six years.

Where did Alibaba go public?

On 19 September 2014, Alibaba’s initial public offering (IPO) on New York Stock Exchange raised US$25 billion, giving the company a market value of US$231 billion and, by far, then the largest IPO in world history.

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Why is Alibaba stock falling?

Shares in Alibaba have collapsed by more than 50\% this year amid signs of slowing growth at the company. More broadly, the entire Chinese tech sector has been hit amid a widespread regulatory crackdown by Beijing as President Xi Jinping has tightened his control over the world’s second-largest economy.

Can Alibaba reach 1000?

Alibaba has considerably more challenges on hand now than in early 2019 (U.S.-China trade war), yet the share price manages to be substantially higher. Drawing a straightforward trend line price chart, BABA shares could reach $1,000 sometime in the first quarter of 2027 if it crawls along with the support level.

Will Alibaba keep going up?

For its current fiscal year 2022, Alibaba is expected to earn $8.28 a share, down 17\% compared to 2021. But growth is expected to ramp up in 2023, up 17\% to $9.67.

Why would Alibaba choose to go public in the US?

But why would Alibaba or any foreign company choose to go public on a U.S. exchange rather than choosing one closer to home? While there may be numerous answers to this question, three possible motives stand out: control, reputation, and range of motion.

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What is Alibaba’s IPO?

On May 6, Alibaba Group filed for an initial public offering (IPO) of American depositary shares in the U.S. that is slated to become one of the largest in global history. The all-time IPO record was the $22.1 billion debut of the Agricultural Bank of China in 2010, according to Dealogic.

Why is Alibaba listed on the New York Stock Exchange?

A few years ago when Alibaba Group founders sought to go public, they wanted to raise as much capital as possible and the New York Stock Exchange NYSE was the best opportunity for them. The NYSE is considered to be the leading stock market in the world, so if your company is listed on this exchange that ensures credibility.

Is Al Alibaba a global company?

Alibaba operates mainly in China through its various e-commerce sites. While a major force there, it is not a global household name like Facebook. By heading to the U.S., the company also is taking a big step towards attaining global legitimacy and trust from investors.

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