Alibaba Headquarters, located in The Hangzhou Future Sci-Tech City
© Long Wei—Visual China Group/Getty Images
- Share price:
- $94.38 (mkt close, Nov. 13, 2026)
- Earnings per share (prev. year):
- $4.13
- Sector:
- Consumer Discretionary
- Industry:
- Broadline Retail
Alibaba is a Chinese multinational conglomerate that operates across e-commerce, cloud computing, digital media, and financial technology (“fintech”). Headquartered in Hangzhou, China, Alibaba is probably best known for its e-commerce activities that span various online marketplaces including Alibaba.com, AliExpress.com, Taobao, and Tmall.
Alibaba’s business model bypasses traditional retailer functions like holding inventory and managing logistics. Instead, the company focuses on coordinating all the functions associated with retail into a massive, data-driven network of manufacturers, sellers, marketers, and other service providers.
1999–2006: Early years, Taobao, and Alipay
Alibaba got its start in 1999 as one of the first e-commerce platforms. Founded by Jack Ma in Hangzhou, Alibaba focused first on serving business customers with wholesale interests.
Fast-forward to 2003, when Alibaba launched Taobao to compete with eBay. Focused on the Chinese market, Taobao is a consumer-to-consumer marketplace where individual sellers and small businesses can list their products.
Alibaba made its first foray into digital payments in 2004 with the launch of Alipay, a digital payments platform that resembled PayPal in many ways. The success of Alipay eventually gave rise to Ant Group, Alibaba’s financial services affiliate, which, among other services, uses artificial intelligence to provide microloans to small businesses in China.
Ant Group IPO: No picnic
After Alipay became one of China’s dominant mobile payment services, Alibaba built on its success to create a financial services affiliate, Ant Group (formerly Ant Financial). Ant Group grew rapidly and planned an initial public offering (IPO) in 2020. However, the IPO was abruptly halted by Chinese regulators. They cited concerns that Ant Group’s partners were taking on excessive risk, and that rising consumer spending, driven by easy access to credit, could lead to unsustainable debt in the Chinese economy.
Some sources reported that Xi Jinping personally intervened to halt the IPO as a rebuke to Jack Ma, in response to Ma’s criticisms of the Chinese financial system. Despite the halted IPO, Ant Group remains a major player in the Chinese fintech industry, with Alibaba owning approximately 33% of the company.
The e-commerce company got a major cash infusion in 2005 when Yahoo! acquired a 40% stake for $1 billion. As part of the deal, Yahoo! fully relinquished its China operations to Alibaba.
2007–2016: Further expansion and two IPOs
Alipay is one of China’s dominant mobile payment services.
© Gao Jing—Xinhua/Alamy
It wasn’t until 2007 that Alibaba’s management formulated the vision that would guide the major growth trajectory of the company. Meeting in Ningbo, Zhejiang province, the team decided to “foster the development of an open, coordinated, prosperous e-commerce ecosystem.” Alibaba, according to the plan, would flourish into an ecosystem of businesses and consumers interacting in both digital and offline environments.
In November 2007, Alibaba became a public company. The e-commerce company debuted on HKEX, Hong Kong’s stock exchange. According to Alibaba, its public share sale was the largest since Google’s initial public offering (IPO) in 2004.
Alibaba’s expansion continued, with the launch in 2008 of Tmall—a Taobao spinout that enabled retailers to sell directly to consumers. The cloud computing arm of Alibaba, known as Alibaba Cloud, launched in 2009. Also known as Aliyun, Alibaba Cloud has grown rapidly to provide cloud services to at least 30 regions globally. AliExpress, an international retail platform that connects Chinese manufacturers and distributors with individual consumers, got its start in 2010—a development that significantly expanded Alibaba’s global reach.
Alibaba delisted from HKEX in 2012 before ultimately going public (again) on the New York Stock Exchange (NYSE) in 2014. The company’s NYSE debut under the stock ticker BABA made headlines for being, at that time, the biggest IPO in U.S. history.
2017–2020s: “New retail” and other developments
Alibaba’s chair Jack Ma in 2017 introduced a “New Retail” strategy aimed at removing the boundary between online and offline commerce. The strategy emphasized using physical stores as pickup points for online orders, enhanced supply chain integrations, and supporting the same digital payment methods regardless of where items are purchased.
When Jack Ma speaks, retailers take note.
© Frederic Legrand—COMEO/Shutterstock.com
The year 2018 marked the start of the partnership between Starbucks (SBUX) and Alibaba in China. Aligned with Alibaba’s New Retail strategy, the collaboration involved key businesses within the Alibaba ecosystem—Tmall, Taobao, Alipay, and others.
Alibaba’s immense scale attracted the attention of Chinese regulators, which fined the company for anticompetitive practices in April 2021. Alibaba was forced to pay a record $2.8 billion, and in 2023 announced that the conglomerate would split into six largely independent business units. However, in August 2024, the Chinese government announced that Alibaba’s three-year “rectification” process was complete, part of a broader policy shift as the government moved to support private enterprise and stimulate economic growth.
The Chinese retail giant entered the metaverse in 2023. Under the leadership of Alibaba Cloud, the company released a launchpad called Cloudverse for businesses to form metaverses on the Avalanche blockchain.
Alibaba’s growth can be attributed to a combination of acquisition and organic development. Highlights from Alibaba’s long acquisition history include:
- AutoNavi. Renamed Amap, AutoNavi is a navigation app that Alibaba took private for $1.58 billion in 2014.
- UCWeb. Also in 2014, Alibaba acquired UCWeb—a leading Chinese mobile browser company—to significantly strengthen its mobile presence.
- Youku Tudou. Alibaba purchased this YouTube-like video streaming platform in 2016 for $4 billion.
- Lazada. Another major transaction in 2016 involved Lazada, the Southeast Asian online retailer. Alibaba paid approximately $1 billion for a controlling stake in the company.
- Ele.me. For a whopping $9.5 billion, Alibaba acquired the food delivery platform Ele.me in 2018.
- Sun Art Retail Group. Alibaba spent $3.6 billion in 2020 to acquire a controlling stake in Sun Art Retail Group, a leading hypermarket and supermarket operator in China.
Controversies and criticisms
Alibaba’s history is not without scandal and controversy. Notable issues include:
The annual barrage of Singles Day packages.
© Meng Delong—Visual China Group/Getty Images
- Counterfeit goods on AliExpress and Taobao. The U.S. federal government, via the Office of the United States Trade Representative (USTR), in 2022 designated AliExpress as a market that facilitates “substantial trademark counterfeiting.” Taobao, facing similar accusations, by 2022 was already included in the USTR’s “notorious markets” list.
- Fake sellers. Alibaba has faced backlash for enabling fraudulent sellers to operate. A fake seller uses false information or a stolen identity with the goal of tricking Alibaba users into scam transactions.
- Government mistreatment of Jack Ma. Alibaba founder Jack Ma faced serious repercussions after he criticized Chinese regulators and the Chinese financial system in a 2020 speech. Ma was not seen in public for several months following the speech, and at the same time, the IPO for Alibaba’s Ant Group was suddenly halted by Chinese regulators. The April 2021 judgment against Alibaba, which cost the company billions of dollars and ultimately occasioned its restructuring, is also viewed as part of the fallout from Ma’s speech.
Ready for the next Singles Day?
If you like Amazon Prime Days, then you might love Singles Day in China. Alibaba invented the first Singles Day in 2009 as a daylong shopping event held on November 11. The e-commerce company promoted the event in later years by organizing fancy galas and flying in high-profile performers such as Mariah Carey and Taylor Swift.
Since 2009, the popularity of Singles Day has soared; it now spans several weeks and involves many Chinese and international brands. Alibaba continues to participate in Singles Day, joined by major multinational companies including L’Oréal, Nike, and others.
This article was most recently revised and updated by Allie Grace Garnett
