Alibaba Stock Overview (NYSE:BABA) – All You Need to Know About Alibaba Group

Alibaba Group (NYSE: BABA) is one of the world’s largest e-commerce and technology companies in China. Originally established as an online marketplace to connect Chinese manufacturers with global buyers, Alibaba has since grown into a diversified conglomerate spanning e-commerce, cloud computing, digital payments, logistics, and entertainment. 

The company’s stock, listed on the New York Stock Exchange since 2014, remains a key interest for investors due to its market influence and evolving business strategy. This guide provides an overview of Alibaba’s history, business segments, stock performance, and latest developments, helping investors stay informed about one of China’s most influential companies. 

Key Points

• Alibaba’s stock (NYSE: BABA) remains a key focus for investors, with its diverse business spanning e-commerce, cloud computing, and AI. 
• The company’s Q3 2024 earnings showed a 63% net income increase but a 36% drop in cash flow due to cloud investments and Tmall refunds. 
• Alibaba’s potential AI partnership with Apple has fuelled investor optimism, pushing its stock up over 30% in 2025. 

Latest developments investors should note  

Alibaba’s AI Breakthrough: Potential Partnership with Apple and Market Impact ^[1] 

Alibaba’s stock recently surged after reports suggested a potential partnership with Apple to bring AI features to China. If confirmed, this collaboration could strengthen Alibaba’s position in the AI space and provide Apple with a crucial local partner to navigate China’s strict regulatory landscape. The news has fueled investor optimism, pushing Alibaba’s stock up more than 30% in 2025. 

With Alibaba’s strong data ecosystem and AI advancements, the company could play a key role in Apple’s AI strategy in China. Meanwhile, rival Baidu, previously seen as a frontrunner for such a deal, saw its stock decline. As AI continues to shape the tech industry, Alibaba’s growing influence in this space could provide long-term opportunities for both the company and its investors. 

Alibaba Q3 Earnings: Strong Net Income Growth but Cash Flow Declines ^[2,3] 

Alibaba reported a strong 63% increase in net income for Q3 2024, reaching 43.5 billion yuan (US$6.2 billion), driven by gains from equity investments and improved operating income.  

Revenue grew 5% year-over-year to 236.5 billion yuan (US$33.7 billion), with its core e-commerce platforms, Taobao and Tmall, benefiting from higher service fees and better monetisation strategies. The company’s cloud business also saw significant growth, particularly in AI-related product revenues. 

Despite these gains, net cash from operating activities declined by 36% to 31.4 billion yuan (US$4.48 billion), mainly due to increased investments in cloud infrastructure and Tmall service fee refunds. While Alibaba continues to expand its business, investors may watch closely how these investments impact long-term profitability and growth. 

About Alibaba Group

History of the company ^[4,5,6]

Alibaba Group Holding Limited, perhaps one of the most renowned Chinese multinational conglomerates, was founded in 1999 by Jack Ma and a group of 17 co-founders. 

The story of Alibaba begins in Hangzhou, China, where Jack Ma, a former English teacher, recognized the untapped potential of the internet. At a time when China had limited internet penetration, Ma envisioned a platform that would connect businesses and consumers online. With this vision, he founded Alibaba and launched its first online marketplace, Alibaba.com, in April 1999.

Initially, Alibaba.com focused on connecting Chinese manufacturers with overseas buyers, providing a platform for international trade. The company quickly gained traction, and within its first year, it attracted investments from international firms, including Goldman Sachs in 1999, and shortly followed by SoftBank in Jan 2000.

In 2003, Alibaba expanded its operations with the launch of Taobao.com, a consumer-to-consumer marketplace, mounting a direct challenge to eBay’s presence in China. To gain an edge, Alibaba decided to offer its services for free, which attracted a significant number of users. This strategy proved successful, and Taobao emerged as the dominant e-commerce platform in China, effectively pushing eBay out of the market.

Building on its success, Alibaba continued to diversify its portfolio. In 2004, it launched Alipay, an online payment platform, to facilitate secure transactions on its marketplaces. Alipay quickly gained popularity and became a vital component of Alibaba’s ecosystem.

In April 2008, Alibaba made a groundbreaking move by introducing Tmall.com, a business-to-consumer platform that allowed brands to sell directly to consumers. Tmall.com focused on higher-quality products and attracted well-known international brands, strengthening Alibaba’s position in the market.

Alibaba’s growth continued with the introduction of additional breakthroughs and new ventures. In 2009, the company launched 11.11 Singles’ Day, a made-up event that would go on to become the world’s largest shopping holiday, dwarfing even the US’s Black Friday.

In 2010, it launched AliExpress, a platform targeting international consumers, before making its debuts on the New York Stock Exchange in September 2014.

Over the years, Alibaba expanded beyond e-commerce. It ventured into cloud computing with Alibaba Cloud, entered the entertainment industry through Alibaba Pictures, and invested in various sectors, including logistics, digital media, and financial services.

The company also made significant investments abroad, including acquiring a stake in Lazada, a leading e-commerce platform in Southeast Asia.

Despite its achievements, Alibaba has faced challenges and scrutiny. In 2020, the Chinese government launched an investigation into its business practices and fined the company a record USD 2.8 billion in 2021. Alibaba has since taken steps to address regulatory concerns and strengthen its compliance.

Business segments ^[7,8,9]

Currently, the technology giant categories its business units into three main segments – consumption, cloud and globalisation. These are further separated into seven sub-categories:

• China commerce
• International commerce
• Local consumer services
• Digital media and entertainment
• Innovation initiatives and others
• Logistics
• Cloud computing and infrastructure

In March 2023, Jack Ma announced a major restructuring of the company, splitting it up into six smaller units. Five of these newly formed units will also have the ability to independently seek capital and potentially raise their own IPO.

The six newly-formed business units will be: a Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and a Digital Media and Entertainment Group. 

Alibaba is headquartered in Hangzhou, China. Its staff strength is estimated to be 235,000  as of March 2023. 

About the stock BABA

BABA trading information

• Primary exchange: NYSE
• Ticker: BABA
• Country: U.S. 
• Currency: USD
• Trading hours:
  • Main: 9.30am to 4pm ET, Mon to Fri
  • Pre-market: 4am to 9.30am
  • After-market: 4pm to 8pm 

When was BABA listed? ^[10,11]

BABA was listed on the New York Stock Exchange on 19 September 2014. The stock price at IPO was USD 68 per share, raising USD $21.8 billion for the company. The share price for BABA closed at USD 79.55 on 31 May 2023.

Stock splits and dividends 

BABA has not undergone any stock splits to date. The share also does not pay dividends. 

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