Alibaba Group Holding Limited is an ecommerce company that operates across mobile and online platforms. The company was founded in Hangzhou, China in 1999 and but has an international presence.
Alibaba Stock Binary Options Trading
Its subsidiaries include Taobao, Tmall, Juhuasuan, Alibaba.com, AliExpress, Alimama just to mention a few. Its wide portfolio of services is primarily geared toward businesses.
Alibaba has total annual revenue of $12.3 billion and a net annual income of $3.9 billion.
The company is registered and it trades on the New York Stock Exchange (NYSE) under the ticker symbol BABA.
Why Trade the Alibaba Stock
a. World’s largest IPO
In September 2014, Alibaba undertook an Initial Public Offering (IPO) and the e-commerce giant was able to raise $25 billion by selling each share at $68, making this the biggest IPO in the world. Alibaba has proven to have a very strong financial basis and this is the reason why the IPO was extremely successful.
b. Good business model
Alibaba is a continuous success story and stock prices continue to outperform competitors such as Amazon.com and JD.com. Alibaba’ success can be attributed the fact that the company has adopted a business model that depends on advertising and marketing to generate revenue. This model focuses less on rapidly increasing gross merchandise volume and instead focuses on turning the GMV into revenue So far, the company has a revenue growth of 45% and according to analysts, this revenue rate will continue to grow, which is a good indicator for investors.
c. Higher profit margins
Through its marketing and advertising business model, Alibaba has been able to maintain impressive profitability and profit margins. In the last four quarters, the company has generated free cash flow amounting to $6.6 billion and over the last year has recorded a profit margin of 37%.
d. Diversified investments
Because the company has a large amount of cash flow, Alibaba has been able to invest relentlessly in companies that are performing very well. Some of the companies Alibaba has invested in include Zullilly, InTime Retail, Youku, SingPost and so many more. The diversification of investment makes the stock even more stable and potentially more profitable.
|BINARY OPTIONS BROKERS COMPARISON|
Type of Available Binary Options for Alibaba Stock
The common contract types for trading Alibaba stocks are:
• Basic Call/Put options: Predict if the price of Alibaba stock will move up or down before the expiry time.
• Touch options: Predict whether the price of Alibaba stock will touch the given strike price before the expiration time.
• In/Out: Predict whether the price of Alibaba stock will stay within a range of two strike prices.
Possible Signals for Alibaba Stock
First quarter regulatory filings indicate that the hedge fund belonging to billionaire John Paulson has liquidated its position in Alibaba and bought over 14.6 million shares in the American International Group insurance company.
Alibaba has become a majority stakeholder in the online apparels company Zullily, after acquiring a 17.2% stake in the company, an equivalent of $155.365 million.
Factors Influencing Price of Alibaba Stock
· Technology trends in ecommerce and online business e.g. trends in mobile technology
· Consumer trends and attitudes toward online shopping
· Competition and the size of the available ecommerce market in China and internationally