Where Will Alibaba Be in 5 Years?

Alibaba (NYSE: BABA) stock is up over 140% since making its U.S. debut in late 2014. It was already a tech titan in China, playing a crucial role in the lives of many Chinese consumers and businesses. That can be seen in the fact that Alibaba reported fiscal 2015 revenue of $12.3 billion shortly after its U.S. IPO. However, the company just wrapped up fiscal 2020 (the year ended March 31, 2020) and reported $72.0 billion in revenue, a more than 480% increase over the last five years.

Alibaba is far from finished as a growth stock, although it could present a bumpy ride for U.S. shareholders. Uncertainty remains regarding U.S.-China trade relations, and the global economy is still reeling from the effects of COVID-19. The U.S. Senate also recently passed the Holding Foreign Companies Accountable Act, which would delist foreign stocks from American exchanges unless they certify they are not owned or controlled by a foreign government and if the company hasn't allowed the Public Company Accounting Oversight Board (PCAOB) to see their books for three consecutive years. Shareholders will want to monitor the situation.

But as for the business itself, Alibaba is on a roll. The economic shutdown in China to halt the spread of coronavirus from its epicenter in Wuhan created some headwinds, but e-commerce and related services are more important than ever before -- and Alibaba is ready to capitalize on the opportunity.

Source Fool.com