Why is Alibaba PE so high?

What Alibaba does

Its primary business is to offer a digital marketplace where consumers and merchants can connect and buy and sell from each other. But the company has expanded its operations to include cloud computing, digital media and entertainment, and other business offerings.

What is Alibaba’s competitive advantage

Alibaba has a huge customer and seller base which provides it with significant pricing power. Meanwhile it has massive amounts of data from consumers on its online and its other businesses, giving it more room for AI-driven innovation in these areas.

How does Alibaba make money

Alibaba.com generates revenues through advertising fees as well as by charging a fee to list on the platform. Overall Alibaba has an asset light business model where it provides an eCommerce platform to sellers looking to reach consumers.

Why is Alibaba so successful

Alibaba gathers scattered customers with similar needs to form a powerful purchasing group that can buy single products at a wholesale price. Furthermore, Alibaba also takes advantage of its massive online customer behavior data to develop products suited to particular customer habits.

Who is Alibaba’s biggest competitor

JD.com is one of Alibaba's primary domestic competitors in the ecommerce space. Alibaba also faces smaller national competitors and local upstarts across the Chinese landscape, including the Chinese ecommerce site Pinduoduo.

Why Alibaba will beat Amazon

Alibaba has both a cheaper valuation and faster revenue growth than Amazon, which would theoretically make it a better buy. However, Amazon faces less political risk than Alibaba does, which justifies some sort of a premium.

Why is Alibaba losing value

The stock has lost more than 70% of its value since late 2020, hammered by regulatory crackdowns, rising competition from the likes of JD.com (JD) and Pinduoduo (PDD), and a Covid-induced slowdown in the world's second-largest economy.

Who are Alibaba rivals in China

JD.com is one of Alibaba's primary domestic competitors in the ecommerce space. Alibaba also faces smaller national competitors and local upstarts across the Chinese landscape, including the Chinese ecommerce site Pinduoduo.

Is Alibaba losing market share

However, as competition arises, Alibaba has seen the sales share of its ecosystem of platforms—including Taobao, Tmall, Tmall Supermarket, Tmall Global, and Tmall Global Supermarket—drop by nearly 50% to a 44% e-commerce market share in 2022 from 78% in 2015.

What is the PE ratio of BABA vs Amazon

BABA currently has a forward P/E ratio of 14.10, while AMZN has a forward P/E of 70.93. We also note that BABA has a PEG ratio of 1.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMZN currently has a PEG ratio of 3.91.

Will BABA ever recover

The website's algorithm-based analysis projected that the BABA share price could fall to $2.54 by the end of 2022. However, Coin Price Forecast projected the price could recover, although it would take 12 years to return to the previous all-time high above $300.

Will Baba ever recover

The website's algorithm-based analysis projected that the BABA share price could fall to $2.54 by the end of 2022. However, Coin Price Forecast projected the price could recover, although it would take 12 years to return to the previous all-time high above $300.

Is Baba stock undervalued

Valuation & Word on Wall Street

Alibaba stock is relatively cheap, trading at 21.34x P/E TTM basis as of today, trading well below the peer group; we believe the stock is undervalued for the growth prospects present.

Why China fines Alibaba

Chinese regulators hit Alibaba with a 18.23 billion yuan ($2.8 billion) fine in its anti-monopoly investigation of the tech giant, saying it abused its market dominance. The probe's main focus was a practice that forces merchants to choose one of two platforms, rather than being able to work with both.

Is Alibaba bigger than Tencent

For Alibaba, the company recorded revenue of RMB 841.9 billion (US$15.7 billion) in the last 12 months, a 13.7% growth from the 2020 fiscal year. Meanwhile, Tencent saw full-year 2020 revenue of RMB 482.1 billion which grew to RMB 549.6 billion in the last 12 months, a 14.0% growth.

Why is Alibaba stock so weak

Alibaba stock has come under pressure amid worries of a Chinese economic slowdown. Alibaba and other Chinese tech stocks were weaker Tuesday amid increasing fears of an economic slowdown in China.

What is the PE ratio of Alibaba

P/E ratio as of July 2023 (TTM): 22.8

According to Alibaba's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 22.7842. At the end of 2021 the company had a P/E ratio of 31.5.

What is PE ratio for Alibaba

As of today (2023-07-14), Alibaba Group Holding's share price is $94.56. Alibaba Group Holding's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 was $4.03. Therefore, Alibaba Group Holding's PE Ratio for today is 23.45.

Could BABA reach $1,000

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. Alibaba's P/E ratio would compress to a mere 11 times on a forward basis (FY2026) and this is based on the current depressed environment.

Is BABA stock undervalued

Valuation & Word on Wall Street

Alibaba stock is relatively cheap, trading at 21.34x P/E TTM basis as of today, trading well below the peer group; we believe the stock is undervalued for the growth prospects present.

Is BABA still a good buy

Alibaba has 50.92% upside potential, based on the analysts' average price target. Is BABA a Buy, Sell or Hold Alibaba has a conensus rating of Strong Buy which is based on 13 buy ratings, 1 hold ratings and 0 sell ratings.

How much did Tencent and Alibaba get fined

The People's Bank of China on Friday fined financial technology giant Ant Group, an affiliate of Alibaba, almost $1 billion, while Alibaba and Tencent's financial unit were fined $427 million and $413 million, respectively, according to government and company statements.

Who is Alibaba biggest competitor

JD.com is one of Alibaba's primary domestic competitors in the ecommerce space. Alibaba also faces smaller national competitors and local upstarts across the Chinese landscape, including the Chinese ecommerce site Pinduoduo.

What is the PE ratio of Alibaba today

As of today (2023-07-14), Alibaba Group Holding's share price is $94.56. Alibaba Group Holding's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2023 was $4.03. Therefore, Alibaba Group Holding's PE Ratio for today is 23.45.

How much PE is overvalued

Investors and analysts consider stocks which have a P/E ratio of 50 or above to be an overvalued share, especially in comparison to a stock which has a ratio at par with or below 10. As it allows investors to determine that its share prices are considerably higher than what a company can afford to pay as dividends.