Alibaba stock has been hitting record highs lately. The stock has gained momentum since the end of China’s Golden Week holiday. What is behind the momentum in Alibaba stock? What does Alibaba's stock forecast indicate for investors buying the stock now?
What is Alibaba?
Alibaba is a Chinese technology group co-founded by billionaire Jack Ma and associates. The company's businesses include e-commerce, cloud computing, and digital entertainment. Alibaba owns a third of Ant Group, which also doubles up as its payments affiliate.
Alibaba stock news for investors
Investors have piled on Alibaba stock as its payments affiliate Ant Group gears up for what could be a record-breaking IPO. Alibaba owns a substantial stake in Ant Group. The IPO is certainly positive for the Chinese e-commerce and cloud powerhouse. Many U.S. investors see Alibaba stock as a window into the Ant Group IPO, which is taking place in China.
World's 5 Largest IPOs— Larissa Fernand (@larissafernand) October 12, 2020
2007: Industrial & Commercial Bank of China: $21.9 B
2010: Agricultural Bank of China: $22.1 B
2014: Alibaba: $25 B
2019: Saudi Aramco: $25.6 B
Look at the gap between each (years), and now in just a year, we break the last record.
2020: Ant Group: $30 B
Investors have been seeking out Alibaba stock amid the COVID-19 pandemic. So far in 2020, many people have shifted to online shopping in China and around the world. Alibaba has been expanding to China’s smaller cities more rapidly since the COVID-19 pandemic started. Alibaba has also seen more demand for its e-commerce service overseas. The company has tapped Atlas Air to help it deliver packages to customers in South America quickly.
Ant Financial IPO date delayed
Ant Group, also called Ant Financial, is preparing for what's shaping up to be the world’s largest IPO. The Ant Group IPO, which is taking place simultaneously in Shanghai and Hong Kong, is expected to raise as much as $35 billion.
"Ant" (Alibaba payment systems) is expected to raise $30 billion in an IPO. Valuation of $300 billion. The most integrated fintech system in the world. Amazing Chinese!— R. Balakrishnan (@BalakrishnanR) October 11, 2020
Ant has been able to convince 10 million people who use its Alipay service to invest about $9 billion in its IPO through mutual funds. However, Ant’s arrangement with mutual funds that benefit Alipay users seems to bother Chinese authorities. The authorities are probing the arrangement for conflict of interest, which has delayed regulatory approval of the Ant IPO, according to Reuters.
What is Alibaba's stock price today?
Recently, Alibaba stock hit several milestones. The stock rose 0.80 percent in regular trading on Oct. 13 and finished at $308.78, which set a new all-time high. The stock traded in the $303.03–$310.01 range. Alibaba stock is up 45 percent in 2020. The stock has gained 80 percent over the past year.
Alibaba stock afterhours
Trading in Alibaba stock continued into the after-hours session on Oct. 13. Investors continued to show more interest in owning Alibaba stock during the extended session. The stock jumped 0.10 percent in after-hours trading and wrapped up at $309.10, which was another record high.
Alibaba's stock forecast
What does the future look like for Alibaba stock? The most bullish analyst sees nearly a 30 percent upside potential in Alibaba stock to $390 in 12 months. If the momentum in Alibaba stock continues, some think that a $480 price is within reach by the end of 2021. However, the most bearish analyst sees a 15 percent downside potential in Alibaba stock to $262. Wall Street's consensus is that investors should be buying Alibaba stock now.