Should You Invest in Alibaba Stock Now?

Alibaba has some impressive businesses, but investing in their stock isn't without risks. Its share price has been up and down, reaching highs of $317 and lows of $58. Currently, it's at around $90. This might be a good opportunity to invest, but before you do, let's examine both the pros and cons of investing in Alibaba.

The bull case
Alibaba served 900 million customers and enabled over a trillion dollars worth of transactions in fiscal year 2022.
Alibaba Cloud has a 37% market share in China, and Ant Group powers over half of China's payment industry.
Alibaba has solid younger ventures with potential for growth in large and growing markets.
Alibaba has a solid balance sheet with $61 billion in cash net of borrowings and generated $20 billion in free cash flow in the first nine months of fiscal year 2023.
Alibaba has been growing revenue at a rapid rate of more than 30%, with solid businesses and plentiful resources to keep growing at respected rates for years to come.

So is Alibaba stock a buy?
The bulls and the bears have good reasons to hold onto their stances.

For investors willing to tolerate some volatility, it makes sense to buy Alibaba stock today. It owns some of the best businesses in China, and the stock is cheap -- it has a price-to-sales (P/S) ratio of 1.7 compared to its five-year average of 6.5.
If you are unwilling to take on the aforementioned risks, it is best to avoid the stock.