What's Going On With Alibaba Stock?

Alibaba Group Holding Limited BABA shares are trading lower Tuesday, and the stock has dropped over 9% during the month of January.

What To Know:

Several Chinese internet firms are trading lower Tuesday following a report from the South China Morning Post reported that Baidu, Inc.’s BIDU Ernie Bot AI platform was being tested by a university affiliated with the Chinese military.

Also last week, the company announced that the Taobao and Tmall Group (TTG) is beta testing new AI tools for merchants on its Chinese online shopping sites. TTG plans to enhance seller-consumer interactions by employing AI models to upgrade Dianxiaomi, a customer service chatbot, SCMP reports.

According to data from Benzinga Pro, Alibaba shares are trading below the stock’s 50-day moving average of $113.74 and well-below its 52-week high of $160.88.

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BABA Price Action: According to Benzinga Pro, Alibaba shares are down % at $ at the time of publication.

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Alibaba Group Holding Limited has reported average annual revenue growth of 20.74% over the past 5 years.

It's also important to pay attention to valuation when deciding whether to buy a stock. Alibaba has a forward P/E ratio of 7.37. This means investors are paying $7.37 for each dollar of expected earnings in the future. The average forward P/E ratio of Alibaba Group Holding's peers is 21.37.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

Image: Mohamed Hassan from Pixabay