If You Invested $10,000 In Alibaba Stock 10 Years Ago, How Much Would You Have Now?

Alibaba Group BABA provides technology infrastructure and marketing reach to help merchants, brands, retailers and other businesses engage with their users and customers in the People’s Republic of China and internationally.

It is set to report its Q2 2025 earnings on November 14. Wall Street analysts expect the company to post an EPS of $2.10, down from $2.14 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $33.95 billion, up from $30.81 billion in the previous year.

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If You Bought Alibaba Stock 10 Years Ago

The company's stock traded at approximately $98.60 per share 10 years ago. If you had invested $10,000, you could have bought roughly 102 shares. Currently, shares trade at $97.98, meaning your investment's value would have dropped to $9,937 from the stock price decline. However, Alibaba also made three dividend payouts in 2023.

Alibaba's dividend yield is currently 2.04%. Over the last 10 years, it has paid about $2.66 in dividends per share, which means you could have made $270 from dividends alone. 

Summing up $9,937 and $270, we end up with the final value of your investment, which is $10,207. This is how much you could have made if you had invested $10,000 in Alibaba stock 10 years ago, representing a total return of just 2.07%. However, this is significantly lower than the S&P 500 total return for the same period, which was 221.40%.

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What Could The Next 10 Years Bring? 

Alibaba has a consensus rating of "Buy" and a price target of $119.87 based on ratings from 24 analysts. The price target implies more than 22% potential upside from the current stock price.

On Aug. 15, the company announced its Q1 2025 earnings, posting revenue growth of 4% year-over-year to $33.47 billion, missing the analyst consensus estimate of $34.81 billion, as reported by Benzinga. Adjusted earnings per ADS of $2.26 beat the analyst consensus estimate of $2.13. 

Net income plunged 29% year-over-year to $3.34 billion, while adjusted net income declined 9% to $5.6 billion.

"Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share of Taobao and Tmall Group as we returned the business to a growth trajectory. The cloud business achieved positive revenue growth momentum, driven by public cloud and AI-related product adoption as we continue to invest in maintaining our market leadership," said Eddie Wu, Chief Executive Officer of Alibaba Group.

Recently, financial giants have made a conspicuous bullish move on Alibaba. Check out this article by Benzinga to learn more.

Given the expected upside potential of over 22%, growth-focused investors may find Alibaba stock attractive. Furthermore, they can benefit from the company's solid dividend yield of 2.04%.

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