Alibaba Group Holding Limited (BABA)
Alibaba is a massive Chinese technology giant that operates the world's largest online marketplaces and provides cloud computing services.
Is Alibaba Group Holding Limited a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Dominant market position in Chinese e-commerce. Worth weighing: Complex corporate structure.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Alibaba Group Holding Limited do?
Think of Alibaba as a mix of Amazon and eBay, but on a much larger scale, connecting millions of buyers and sellers across China and beyond. They make their money primarily through advertising fees on their shopping platforms and by renting out computing power to other businesses. Their path depends on navigating the shifting Chinese economy and on how effectively they can grow their cloud business to rival global players.
On our factor screen it looks strongest on value and income, and weakest on momentum.
- ✓Pays a dividend - about 0.8% a year
- ✓Growing - revenue up about 3% over the year
- ✓Low debt - a sturdier balance sheet
- Value screens high
- —
Does Alibaba Group Holding Limited pay a dividend?
Yes - Alibaba Group Holding Limited currently pays a dividend of about 0.8% a year, which is £7.90 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about Alibaba Group Holding Limited's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 11 Jun 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
Does Alibaba Group Holding Limited have more cash or more debt?
It holds about 316.82B in cash against about 281.72B of debt - so it has net cash of about 35.10B. More cash than debt is a cushion: it does not need to borrow just to cover what it owes.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do Alibaba Group Holding Limited's numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-10. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Alibaba Group Holding Limited actually fallen?
Over the last 2 years of daily prices, Alibaba Group Holding Limited fell as much as −50% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
What do you actually own with BABA?
This US listing is an American Depositary Receipt (ADR), not a direct holding of Alibaba Group Holding Limited's ordinary shares. A bank holds the real shares in China and issues receipts against them, and it is those receipts that trade in US dollars on a US exchange. It is the standard route by which a company listed abroad becomes available on a US market, and the receipt tracks the shares behind it.
- Two currencies are involved. Alibaba Group Holding Limited reports its results in Chinese yuan, while the listing itself trades in US dollars. Exchange-rate moves therefore affect the value alongside the movement of the underlying shares.
- There is a custody fee. The depositary bank charges a small annual fee for running the arrangement - often a few cents per receipt - usually taken out of dividends or passed on by your platform.
- Dividends cross a border. Any dividend is converted into US dollars by the bank, and China may deduct withholding tax before it reaches you.
- Voting works differently. Receipt holders generally do not vote at the company's meetings directly; the bank holding the shares handles that.
This describes how the listing is put together, using its registered security type. It is context about the instrument, not a view on the company.
Does the share price tell you if it's cheap or expensive?
Who owns Alibaba Group Holding Limited?
About 11% of Alibaba Group Holding Limited, or about 11 in every 100 shares, is held by big institutions such as pension and index funds, and company insiders hold about 2%. The rest, roughly 87%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Alibaba Group Holding Limited make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of Alibaba Group Holding Limited's sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £60 covers making the product or service, £30 goes on running costs, tax and interest, and about £10 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does Alibaba Group Holding Limited report earnings, and how did recent quarters go?
Alibaba Group Holding Limited is next scheduled to report on about 2026-11-24 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-08-20 | $10.82 | $8.52 | Missed -21% |
| 2026-05-13 | $5.74 | $0.62 | Missed -89% |
| 2026-03-19 | $10.94 | $7.09 | Missed -35% |
| 2025-11-25 | $5.78 | $4.36 | Missed -25% |
| 2025-08-29 | $15.47 | $14.75 | Missed -5% |
| 2025-05-15 | $12.81 | $12.52 | Missed -2% |
Across the last 6 quarters here, Alibaba Group Holding Limited came in ahead of what analysts expected 0 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Alibaba Group Holding Limited?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Successful international expansion and dominance in AI-driven cloud services.
Long-term structural decline in the Chinese retail market.
What are the pros and cons of Alibaba Group Holding Limited?
A balance check, not a score or verdict.
- Dominant market position in Chinese e-commerce
- Strong cash flow generation from core businesses
- Significant growth potential in cloud computing
- Complex corporate structure
- High sensitivity to Chinese regulatory environment
- Intense competition from domestic rivals
- Geopolitical tensions affecting international trade
- Changes in Chinese government policy
- Slowing consumer spending in the domestic market
The write-up's own warning lights — if these start happening, the case above changes.
- A major shift in Chinese government policy toward private tech firms
- A sustained, multi-year decline in Chinese consumer spending
Common questions about Alibaba Group Holding Limited
Does Alibaba Group Holding Limited pay a dividend?
Yes - Alibaba Group Holding Limited currently pays a dividend of about 0.8% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does Alibaba Group Holding Limited report earnings next?
Alibaba Group Holding Limited is next scheduled to report results on about 2026-11-24. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.