1. Alibaba Group Holding Limited – ADR (NYSE:BABA)
Billionaire David Tepper Q1’2024 Stake Value: $814,050,000
Billionaire David Tepper surprised everyone by boosting his stake in Alibaba Group Holding Limited – ADR (NYSE:BABA) by a whopping 159% in the first quarter. The billionaire now owns stake worth about $814 million in Alibaba Group Holding Limited – ADR (NYSE:BABA) that has struggled amid economic headwinds and regulatory crackdowns in China. However, some believe Alibaba Group Holding Limited – ADR (NYSE:BABA) is making a turnaround and now is the time to pile into the stock. Jim Cramer recently highlighted Tepper’s huge stake in Alibaba Group Holding Limited – ADR (NYSE:BABA) in a program on CNBC, saying:
“I was talking to my buddy Dave Tepper, he’s got a huge position in Alibaba. He’s one of my thousand bosses I had at Goldman. And we both admit.. I mean this is one of the cheapest stocks.. it’s the cheapest stock in the world.”
Michael Burry also owns a significant stake in Alibaba Group Holding Limited – ADR (NYSE:BABA) as of the end of March this year.
Artisan Select Equity Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2023 investor letter:
“Pretty much all of our holdings rose during the quarter. Only one stock declined by more than a couple of percent—Alibaba Group Holding Limited (NYSE:BABA), which was down 9% for the quarter and 12% for the year. This investment continues to be a disappointment. We estimate the shares are trading at around 5X EBITA—a valuation normally reserved for a company with evaporating profits. While it’s true Alibaba is underperforming its peers in the market, the fact is it remains the market leader in its core businesses, and the business is still growing. In the most recent quarter, revenues grew 9% and profits grew 26%.It’s not evaporating.
The management seems to be making meaningful changes designed to enhance shareholder value, including structural changes to improve profitability and restore its competitive position. It is monetizing non-core assets and making improvements in capital allocation. A lot of good things are happening that are not yet recognized in the share price. There are reasons—primarily geopolitical—for this, but at the current valuation, we could easily see the shares double and they would still be cheap.”
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