Should I buy BABA stock in 2025?

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At HelloSafe, our expert has been monitoring BABA’s performance for more than three years. Every month, hundreds of thousands of users across Canada rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided strictly for informational purposes and do not constitute investment advice. In line with our ethical guidelines, we have never accepted, and will never accept, compensation from BABA.

What is BABA?

How much is BABA stock?

The price of BABA stock is rising this week. As of now, BABA is trading at $118.99 USD with a 24-hour gain of 0.09% and a weekly increase of 0.02%. The company’s market capitalization stands at $284.91 billion, with an average three-month trading volume of 31.99 million shares.

BABA has a stock beta of 0.24, indicating relatively low volatility. Given its recent gains and steady fundamentals, BABA may appeal to investors looking for growth potential with moderate risk in today’s market.

Our full analysis on BABA stock

Having thoroughly reviewed Alibaba Group’s most recent financial disclosures alongside its stock performance over the past three years, our analysis integrates a diverse set of quantitative signals—from financial ratios and technical indicators to industry trends and peer benchmarking—using proprietary valuation algorithms tailored for technology equities. This multifaceted approach reveals important insights into both the company’s operational momentum and its share price trajectory. So, why might BABA once again emerge as a strategic entry point into the global technology and e-commerce sector in 2025?

Recent Performance and Market Context

Alibaba Group’s (NYSE: BABA) stock has delivered a striking rebound in the past twelve months, up an impressive 58.84% year-over-year as of April 30, 2025. The current share price, at $118.99, marks a solid advance from its 52-week low of $71.80, demonstrating a powerful recovery driven by improved investor sentiment, resilient execution, and a larger rotation back into international technology leaders.

This rally has been underpinned by several positive developments. A series of strong earnings surprises—culminating in a December quarter that saw net income more than quadruple year-over-year—has reinforced growing confidence in BABA’s core operations. Strategic divestments of non-core assets (notably Sun Art and Intime), a robust $20.7 billion share repurchase authorization, and the completion of a successful $5 billion bond issue in late 2024 have all contributed to liquidity and balance sheet optimization.

The macroeconomic backdrop is also turning increasingly favourable. After a challenging regulatory environment and pandemic-related headwinds, China’s broader consumer sector is witnessing renewed dynamism, lifting e-commerce activity and benefiting leaders like Alibaba. Globally, the secular tailwinds of digital transformation—including persistent demand for cloud computing and AI—add another layer of structural support, positioning BABA to capitalize on both domestic recovery and expanding international demand.

Technical Analysis

A detailed evaluation of BABA’s technical positioning suggests a convergence of supportive signals for medium- and long-term investors. The stock trades about 4.36% above its 20-day moving average, underscoring short-term strength and renewed buying interest. While it currently sits 6.54% below its 50-day moving average, this may in fact signal a potential technical “reset,” typically offering a more attractive entry point for investors seeking to ride subsequent uptrends.

Crucially, BABA remains 19.38% above its 200-day moving average, highlighting a clear long-term rising trend—an indicator often associated with major market leaders beginning sustained bullish phases. The neutral RSI (14) reading at 50.27 suggests the stock is neither overbought nor oversold, providing balanced momentum with room for additional upside. While the MACD remains modestly negative, its proximity to a potential bullish crossover warrants attention; such reversals often precede rallies, particularly when supported by fundamental catalysts.

Support levels in the $110–$115 zone appear robust, repeatedly attracting institutional buying in recent months. Resistance is observed at $130–$135 and the 52-week high at $148, with a convincing break above these thresholds likely to ignite further momentum-driven inflows. With volatility around 2.5% daily, BABA offers active yet manageable trading conditions, appealing to both tactical and strategic investors.

Fundamental Analysis

BABA’s resurgence is deeply underpinned by broad-based fundamental strength. Total revenue for the December 2024 quarter reached $38.38 billion, up 8% year-over-year—this acceleration was mirrored across business lines, with International Commerce (+32%), Cloud Intelligence (+13%), and Local Services (+12%) all delivering double-digit growth. Most notably, net income surged 333% year-over-year to $6.36 billion, demonstrating effective operating discipline and benefits from strategic refocusing.

Beyond the numbers, Alibaba’s structural strengths are hard to overlook:

• Market dominance in Chinese e-commerce (Taobao, Tmall) with leading international platforms.
• Innovative leadership in cloud computing (third largest globally) and AI—evident in sustained triple-digit growth in AI-related revenue and rapid iteration of proprietary large language models (Qwen2.5 series).
• Strong brand equity and a proven ability to scale across diverse verticals.

The company’s ongoing asset optimization—including strategic divestitures and rationalization of capital allocation—further amplifies its capacity for reinvestment, share buybacks, and targeted expansion, all of which support shareholder value creation.

Volume and Liquidity

Liquidity remains a core strength for BABA: its average daily volume stands at nearly 32 million shares—extraordinary for a non-US tech major—ensuring tight bid-ask spreads and efficient trade execution for institutional and retail participants alike. Such volume signals active market engagement, underpinned by continuous interest from deep-pocketed investors and the growing presence of North American funds seeking technology exposure well beyond the US.

Alibaba’s float and market capitalization ($284.91 billion) also contribute to valuation dynamics that are both responsive and robust. This high tradability allows for dynamic re-rating as fundamentals evolve, giving confidence that emerging catalysts will be more efficiently reflected in the share price.

Catalysts and Positive Outlook

Alibaba’s growth prospects are energized by a breadth of near- and medium-term catalysts:

• AI and Cloud Expansion: Sustained triple-digit growth in AI-related products and ongoing innovation (e.g., Qwen2.5-Max and VL models) reinforce Alibaba’s leadership in two of the fastest-growing segments of global technology. The open-sourcing of its AI models further amplifies its ecosystem and developer engagement.
• Strategic Shareholder-Friendly Moves: With $20.7 billion remaining on its repurchase authorization, the ongoing buyback program continues to support EPS growth and instill market confidence.
• International Growth Engine: The International Commerce segment, up 32% YoY, benefits from significant momentum through joint ventures, notably with South Korea’s Shinsegae, and further expansion in Europe and Southeast Asia.
• Operational Efficiency: Streamlining and focus—through selective asset sales and core business expansion—are already reflecting in an 83% YoY rise in operating profits.
• Favourable Sector Dynamics: The global pivot toward digitalization, resilient tech sector earnings, and renewed vigor in Chinese consumer spending provide a constructive macro backdrop. Provided regulatory uncertainties remain manageable, these factors may coalesce to create a sustained tailwind.

Investment Strategies

Given BABA’s technical and fundamental picture, a variety of entry strategies appear justified depending on investor profile and time horizon:

• Short-term: For active traders, the $110–$115 support zone stands out as an attractive technical floor, offering potential for swing trades as reversal signals firm up. Watch for a confirmed bullish MACD crossover or renewed momentum above the 20-day average to initiate tactical positions.
• Medium-term: Investors seeking asymmetric risk/reward may find current levels compelling—particularly ahead of key catalysts such as further AI milestones, joint venture announcements, or strong quarterly guidance. A breakout above $130 would validate medium-term bullishness and set the stage for a retest of yearly highs.
• Long-term: Strategic investors with a multi-year horizon can benefit from dollar-cost averaging at present valuations. Alibaba’s leadership in e-commerce, accelerating cloud/AI adoption, and robust cash generation underpin a sustained growth trajectory that may be underappreciated at a sub-13x forward P/E—a significant discount to US peers with similar technology exposure.

Across all horizons, the stock’s blend of technical support, operational momentum, and visible catalysts seems to represent an excellent opportunity for portfolio inclusion, particularly for those seeking international and tech-sector diversity.

Is It the Right Time to Buy BABA?

In summary, BABA stands out for its clear value proposition—dynamic growth driven by e-commerce and cloud leadership, surging profitability, and a management focus on capital efficiency. The stock’s compelling recovery, robust trading liquidity, and improving operating leverage are reinforced by strategic catalysts now gaining traction, especially within AI and international expansion.

Combined with an attractive valuation and a resilient balance sheet, BABA’s outlook is brighter than at any point in recent years. The fundamentals justify renewed interest, and the technical picture suggests the stock may be entering a new bullish phase. For Canadian investors seeking exposure to global technology and growth themes, Alibaba seems to represent a timely and well-founded opportunity—one that deserves serious consideration as part of an informed and diversified portfolio strategy.

With this positive alignment of technical and fundamental factors, BABA offers a compelling roadmap for those looking to participate in the next phase of global tech sector expansion.

How to buy BABA stock in Canada?

Buying Alibaba (BABA) stock online is both simple and secure when you choose a regulated broker in Canada. Retail investors have two main options: you can either buy BABA shares directly (“spot buying”) to become an actual shareholder, or trade Contracts for Difference (CFDs) to speculate on price movements with leverage, without owning the shares. Each method offers distinct advantages depending on your investment goals and risk appetite. Further down the page, you'll find a detailed broker comparison to help you make the best choice for your needs.

Spot Buying

When you purchase BABA shares “for cash” via a broker, you’re buying real shares that are held in your account. As a shareholder, you benefit from any price appreciation and may receive dividends. Most Canadian brokers charge a fixed commission per trade, typically ranging from $4.99 to $9.99 in CAD per order.

Important example

If BABA is trading at $118.99 USD (approximately $162 CAD per share given the current exchange rate), and you invest $1,000 CAD (about $730 USD), you could buy around 6 shares. Including a typical brokerage commission of $5 CAD, your total cost is about $1,000 CAD.
✔️ Gain Scenario:
If the share price rises by 10%, your 6 shares are now worth approximately $1,100 CAD.
Result: +$100 gross gain, or +10% on your investment, before taxes and currency fluctuations.

Trading via CFD

CFDs (Contracts for Difference) allow you to trade the price movement of BABA without owning the underlying shares. This method offers leverage, so you can take a larger market position with a smaller amount of capital, but it also introduces higher risk. CFD trading typically involves paying a spread (the difference between buy and sell price) and may incur overnight financing fees if held past market close.

Important example

You open a CFD position on BABA using $1,000 CAD as margin with 5× leverage, giving you $5,000 CAD in market exposure.
✔️ Gain Scenario:
If BABA’s price increases by 8%, your position earns 8% × 5 = 40%, or +$400 on your $1,000 CAD margin (excluding fees). Remember, leverage magnifies both gains and losses.

Final advice

Before investing in Alibaba stock, it’s essential to compare brokers’ fees, the currencies offered, and trading conditions, as these can impact your net return. Whether you opt for direct share ownership or leveraged CFD trading depends on your investment objectives, risk tolerance, and preferred time horizon. Take the time to review the broker comparison below to find the platform that best fits your needs, so you can invest in BABA with confidence and control.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying BABA stock

The latest news about BABA

Alibaba’s international commerce segment reported 32% year-over-year revenue growth, indicating robust global expansion momentum.

Within the latest quarterly results, Alibaba highlighted an impressive 32% rise in its international commerce segment year-over-year, a signal of strong demand and market penetration outside of China. This is particularly relevant for Canadian market observers as Alibaba continues to target North America with its e-commerce platform AliExpress and its cloud solutions. The continued international expansion not only diversifies revenue streams but also mitigates risks linked to the Chinese domestic market, making BABA’s growth story increasingly compelling to investors in Canada who favor globally diversified technology leaders.

Alibaba recently reconfirmed a $20.7 billion share repurchase program, supporting shareholder value and indicating management’s confidence in long-term growth.

The company has maintained a robust buyback program, with $20.7 billion in authorized repurchases still available as of the most recent filings. For Canadian investors, this is a constructive signal as share repurchase programs are typically seen as an indicator of management belief in undervaluation and a commitment to shareholder returns. It further aligns Alibaba’s capital allocation strategy with North American norms, potentially making the stock more attractive to institutional investors in Canada.

Recent performance in cloud computing and AI-related products remains a key growth driver, with AI revenues sustaining triple-digit growth for six consecutive quarters.

Alibaba’s focus on artificial intelligence and cloud services directly parallels the priorities of Canadian enterprises, several of which are themselves investing heavily in digital transformation. The company’s consistent, rapid growth in AI further cements its credibility as a global technology innovator. This is especially relevant as Canadian businesses and research institutions increasingly look to access advanced, scalable cloud infrastructure and AI tools, often turning to international providers like Alibaba Cloud for competitive solutions.

BABA’s stock price has posted a 58.84% gain over the past 12 months and is up 40.33% year-to-date, supported by strong fundamentals and improving profitability.

These figures underscore a significant recovery and renewed investor confidence, particularly relative to the broader technology sector. For Canadian market participants, Alibaba’s stable performance and above-average return profile stand out against a backdrop of volatility in international equities, and the company’s price-earnings ratio of 17.19 (forward P/E: 12.05) suggests potential for continued appreciation relative to its growth outlook.

Alibaba’s recent dividend payout of $1.00 per share and ex-dividend date of June 13, 2024, reflects a positive shift toward returning capital to shareholders.

With a dividend yield of 0.84%, Alibaba has demonstrated an openness to income-focused investors, a group that includes many Canadian pension funds and retail portfolios seeking yield from global technology stocks. The introduction and maintenance of a dividend, even at a modest level, further signals financial health and operational maturity, characteristics often prioritized by Canadian institutional investors when evaluating international holdings.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.