How To Buy Alibaba Stock In 2023

This post seeks to provide you with a comprehensive step-by-step guide on how to buy Alibaba stocks in 2023. We first provide you with a quick overview of the Alibaba stock investing process before breaking it down and explaining each of the steps in detail.

Additionally, we tell you everything you need to know before buying Alibaba stocks. We start by understanding Alibaba's structure and how it works. We also tell you where to buy Alibaba stocks, examine the factors affecting Alibaba share prices, and reasons to buy and not buy BABA shares today

Let us dive right in.

 

Your capital is at risk. Other fees apply.

Throughout the rest of this Alibaba stock investing guide, we will explore these steps in detail. We will explain these steps in detail, tell you all about Alibaba stock and shares, and tell you if Alibaba stock is worth investing in today.

Alibaba Stock Buying Process Reviewed

Here is the breakdown of the Alibaba stock buying process:

Step 1: Choose A Regulated Stock Broker 

The process of buying Alibaba stock start with creating a share investor account with a regulated broker. At the moment, however, we have hundreds of multi-regulated and solidly reputable share brokerages in operation.

So, how do you identify a share broker that works best for you? Below, we share five factors you ought to consider when searching for the best Alibaba stock broker. These are:

Trading costs

Trading costs, i.e., both trading fees and anon-trading fees charged by a broker, have a direct impact on the profitability of your trades. It, therefore, is important that you check all the charges imposed by your favorite broker and only register with a brokerage with the most competitive fees.

Regulation and reputation

Only register with a regulated brokerage that insures your deposits with such agencies as FDIC or FSCS. They should have a solid reputation for reliability, fast execution of trades, and excellent customer service.

User-friendliness

Your preferred share broker should also maintain a highly navigable and user-friendly trading interface. It should be easy to use for beginners and not so simplistic for PRO share investors/traders.

Access to trading tools

The best Alibaba share broker must also provide its clients and platform users with access to premium analysis, market research, trading, and risk management tools. These include premium financial/business news and economic calendars, charting tools, hard stop loss, and negative balance protection.  

Your investing goals

Your choice of the best Alibaba share broker should also be informed by your investing goals. For instance, if you are looking to invest long-term in actual BABA shares, consider registering with a broker that offers actual Alibaba shares. And if you are looking to trade Alibaba shares short term, register an account with a share CFD brokerage.

To help you get started with BABA share investing, we have vetted multiple share brokers and settled on what we consider the two best Alibaba share and stock brokers in the market. Here is an overview of how each works:

1. eToro – Best Alibaba Stock Broker for Zero-Commission Trades and Social/Copy Trading

eToro is a multi-regulated and highly reputable share brokerage. Established in 2007 as an online forex trading platform, eToro has steadily morphed into one of the most popular multi-asset online trading platforms, boasting a client base of 25+ million users across the world. We, however, consider it one of the best Alibaba share brokers because of its affordability, intuitive interface, and beginner-friendliness.

eToro is a no-commission broker that supports the purchase of actual Alibaba shares as well as the trade of share CFDs. This implies that when buying Alibaba shares or trading BABA share CFDs, you will only pay a competitive spread. Furthermore, share CFDs on the platform can be margin-traded with leverages of up to 1:5. And this, too, attracts competitive swap fees if such leveraged trades remain open overnight.

The share broker's beginner friendliness starts with a quick and straightforward account opening process. It then extends to the affordable minimum initial deposit and trading limit – of $10. This then extends to its easily navigable and highly intuitive user interface. This also integrates a wide range of premium research, analysis, and trading tools.

But even more importantly, eToro tops most investors' list of the best share brokerage because of its social and copy trading features. Social trading allows for smooth interactions between eToro platform users, including collaborations between expert investors and mentorship for beginners.

Copy trading, on the other hand, allows both beginners and expert share traders on the platform to earn passively. Beginners earn by copying trade strategies of highly successful brokers, while expert popular investors receive a commission from eToro based on assets under copy.

Your capital is at risk. Other fees apply.

2. Capital.com – Best Alibaba Broker for Innovative Trading Interface

Capital.com is an equally popular share brokerage. However, unlike eToro, which supports the trade of actual Alibaba shares and CFDs, Capital.com is a pure CFD brokerage. You, therefore, can only trade BABA CFDs on the platform. And to get started, you only need to deposit a minimum of $20 via one of the many payment options supported by the online brokerage.

Like eToro, Capital.com is a commission-free broker – which implies that you will only part with competitive spreads. Further, Capital.com supports margin trading and will let you trade buy/sell BABA share CFDs with leverages of up to 1:5. The only other trading fee that applies to your BABA shares is the swap fee that takes effect if you keep a leveraged trade open at the end of the day.

These charges are also highly variable but attract rather competitive rates. Capital.com does not charge deposit or withdrawal processing fees. It also supports as many as 10 base currencies, effectively eliminating possible currency-conversion fees.

But it makes it our top choice of the best Alibaba share brokers because of its highly innovative trading platform. For starters, Capital.com maintains some of the fastest transaction processing speeds and integrates the widest range of premium analysis, market research, trading, and risk management tools.

The Capital.com website, for example, states that the multi-platform trading tool integrates 70+ technical indicators. But even more importantly, it is AI-powered and comes in handy in helping traders analyze their post-trade behavior. This goes a long way in helping them eliminate bias in their trades.

Your capital is at risk. Other fees apply.

Step 2: Research The Alibaba (BABA) Stock

Now that you know where to buy Alibaba shares online, it now is time to learn as much as you can about the company and the shares that you are about to purchase.

In this section, we will tell what Alibaba is and how it works, examine the past price action of BABA shares, and look at the key factors affecting its share performance

What is Alibaba (BABA)?

Alibaba Group Holding Limited – simply referred to as Alibaba – is a multinational technology company based in China. It was founded in June 1999 by the renowned entrepreneur – Jack Ma – and has its headquarters in Hangzhou, Zhejiang – China. It is one of the largest e-commerce businesses in the world and the largest online marketplace in China.

But Alibaba is more than just an online marketplace. It is currently involved in a host of key niches, including retail, investing, electronic payment, and technology. In 2020, for instance, Alibaba was named the 5th largest artificial intelligence company. It also owns the largest mobile payment platform in the world – AliPay, through its subsidiary – Ant Group. 

How Does Alibaba Work?

Alibaba is a group of closely knitted companies that have, over time, risen to dominate different sectors of the economy – especially retail and technology niches – in China and across the world.

Alibaba's portfolio of companies can, nevertheless, be broken down into three categories of key service providers. These are Business-to-Business (B2B) service providers, Business-to-Consumer (B2C) service providers, and Consumer-to-Consumer (C2C) service providers.

Leading its B2B sector is Alibaba.com – the largest B2B online platform in the world. This connects businesses in 200+ countries and territories to Chinese manufacturers and businesses. Simply put, Alibaba.com facilitates exports and imports between Chinese manufacturers and the rest of the world. There also is the Chinese version of Alibaba.com, referred to as 1688.com, which facilitates trade between businesses in China.

Heading its C2C front is AliExpress, an Alibaba.com spinoff that allows consumers across the world to shop for goods from Chinese manufacturers at wholesale prices. It has become so popular across the world because it helps consumers bypass third parties, a move that is both time- and cost-saving.

At the forefront of its B2C sector is TMall, previously known as TaoBao. This is the inward-facing version of Alibaba.com which facilitates sales between Chinese consumers and both Chinese and international manufacturers. It allows consumers in the Greater China region to shop for brand-name products from manufacturers in and outside of Chinese borders.

Other Alibaba flagship services include eTao, a Chinese-based internet search engine dedicated to online shopping. There also is AliPay – the second largest mobile and online payment platform – after VISA. Founded in 2004, AliPay overtook PayPal as the largest digital payment processor in the world in 2013 and is currently used by more than 1.3 Billion individuals and 80+ Million enterprises across the world.

Alibaba (BABA) Share Price History

Though founded at the height of the dot.com bubble in 1999, Alibaba only went public in September 2014. BABA shares had a listing price of $68 and raised over $25 Billion on the New York Stock Exchange (NYSE). This gave Alibaba a market value of $231 and made it the largest IPO in history – at the time.

By the end of the first day of trading, BABA stock was up by more than 38%, selling for as high as $93. This perhaps was the first pointer to what would be the biggest challenge facing BABA stock, i.e., untamed volatility.

After closing 2014 selling at $103, for example, Alibaba shed as much as 21% throughout 2015 to end that year trading around $81. It then posted a lackluster gain of 8% in 2016 before embarking on its most aggressive price gain yet – growing by more than 96% throughout 2017 to end the year selling for $172.

The massive volatility persisted in the years that followed, and in the last quarter of 2020, Alibaba posted its current all-time high of $873 Billion. Two years later, BABA has shed more than 75% of this peak sock price to trade around $90.

Much of Alibaba's troubles started in late 2020 when China's ruling party – the Chinese Communist Party (CCP) – accused Alibaba of 'monopolistic practices.' Reports then emerged that the government was threatening to break up Ant Group. All this was followed by Jack Ma's silence and 'escape' from the public eye.

Read Also: Alibaba (BABA) Stock Price Prediction And Forecast

Factors Affecting Alibaba's (BABA) Stock Price?

Going through Alibaba's historical share price performance, you get the idea that it is a massively volatile asset. But what are some of the factors influencing this price action? If you were to buy BABA shares today, what factors should you keep an eye out for?

We explore the five most common below:

• Chinese politics: Politically motivated economic policies launched in China have had the biggest influence on Alibaba's share performance in the last few years. We do not expect this to change in the foreseeable future, so you may want to keep an ear on the ground when it comes to economic and political pronouncements of the CCP relating to Alibaba or the Chinese tech and retail sectors.
• Alibaba group revenues: A company's revenues are key indicators of its financial health and sustainability. Scrutinize Alibaba's financial records and pronouncements by its top management and cash in the impact they are expected to have on BABA share prices.
• Industry performance: Check out the future outlook and direction of the larger Chinese technology and retail sectors. Continued growth translates to possible growth for Alibaba and vice versa.
• Alibaba's projected future: Alibaba has, over the years, posted one of the most aggressive growth – both vertically and horizontally. It has launched multiple subsidiaries that have played a critical role in guaranteeing the brand's sustainability. Confirm the growth potential of these Alibaba affiliates and the possibility of possible new launches.
• Macroeconomic factors: In addition to checking the impact that political and economic policies have on Alibaba and its share performance, you need to zoom out. Examine the impact that such global factors as the Russia-Ukraine war and China's multi-fronted economic/political tiffs with countries like the US, Australia, India, and European Union have on Alibaba's performance and BABA shares.

Your capital is at risk. Other fees apply.

Step 3: Open A Share Investor Account And Buy Alibaba (BABA)

In the above sections, we have told you where to buy Alibaba shares. We have also explored everything you need about Alibaba Group and went over BABA's past price action.

In this section, we will teach you how to buy your first BABA stock on the all-popular eToro trading platform. Here is the beginner's guide to buying Alibaba stock on eToro:

1. Open an account with a regulated broker

Start by registering a share investor account with eToro. Simply open the official eToro website and click on the 'Start Investing' or 'Join Now' icons on its home page. Complete the registration form that pops up here by keying in such personal details as your name, address, country of residence, email address, phone number, and trading experience.

Your capital is at risk. Other fees apply.

2. Verify your identity

Like all regulated brokers, eToro will demand that you verify your identity by submitting a copy of your government-issued identity document. This could be the national ID, driver's license, or passport.

3. Fund the account

eToro will send you an email notifying you that your account has been approved. Log in and click on the "Deposit Funds" funds tab. From the list of supported payment methods provided by the brokerages, choose one and follow the prompts to deposit at least $10.

4. Find Alibaba stock

Once this deposit reflects in your account, click on the "Discover" button on your user dashboard. From the supported assets supported, choose shares and find Alibaba (BABA) from the list of supported stocks.

5. Buy Alibaba stocks

Click on the "BUY" icon against Alibaba stocks. A trading menu will pop up where you can customize the trade by indicating the number of Alibaba shares you wish to buy or the amount of cash you wish to spend acquiring BABA shares. Then click the "Open Trade" button to execute the purchase.

Your capital is at risk. Other fees apply.

Alibaba (BABA) Stock Strengths And Weaknesses

We have exhausted the buying process for Alibaba shares. But you still need to ask yourself the question of whether Alibaba stocks are worth buying today in 2023. And to answer this, we look at three upsides to owning BABA shares and two reasons not to buy below:

BUY: Overall uptrending

Even with the massive volatility, Alibaba shares have maintained an overall upward price direction. Moving forward, we anticipate further value gain for the multinational tech giant's market cap and share price.

BUY: Hugely promising future

Most of Alibaba Group's affiliates are still in their nascent stages and are hugely domiciled in China. There, therefore, is enough room for their upward value gain, which will most certainly translate to a proportionate gain for BABA shares.  

BUY: Strong financials

Alibaba has a quick ratio of 1.7, which is indicating of the group's ability to offset all liabilities in a short period. Its P/E ratio is also lower than the industry average, pointing to a potential undervaluation of BABA shares. All these point to a possibly quick rebound for BABA shares.

SELL: Massive volatility

BABA shares are massively volatile. In 2021, for example, they shed more than 48% of their worth and have already lost another 30% in the last 11 months. Avoid investing in Alibaba if you cannot stomach such volatilities and aren't patient enough to wait for their rebound after the possible recession and conflict resolution with CCP.

SELL: Government interference

It is hard to predict or price government interference, and it is already evident that much of Alibaba's current woes are politically instigated. Now – while the tensions between CCP and Alibaba Group persist – may, therefore, not be the best time to invest in BABA shares.

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Your capital is at risk. Other fees apply.

Conclusion – How To Buy Alibaba Stock

There goes everything you need to know about buying Alibaba stocks today. The guide started by providing you with an overview of the Alibaba stock buying process. We then proceeded to explain the steps in detail. At the very top, we told you where to buy Alibaba stocks and highlighted some of the factors that you ought to consider when looking for the best Alibaba stock brokers.

Next, we sought to help you gain a better understanding of Alibaba Group Limited and its BABA shares. Here, we explained what Alibaba is and how it works. The guide then proceeded to explore Alibaba stock's past price action before touching on the different factors affecting its performance. Lastly, we provided you with a beginner's guide to buying Alibaba stocks on the all-popular eToro share brokerage.

Do you want to jump straight to buying Alibaba stocks now? Start by creating a share investor account with a regulated share brokerage like eToro, fund this account, and proceed to buy Alibaba shares or trade BABA share CFDs.

eToro – Best Place to Buy Alibaba Stock

Open an account with eToro, deposit some funds with USD, and finally – buy BABA shares from just $10.

Your capital is at risk. Other fees apply.

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