3. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 115
One of the Best Cash App Stocks, Alibaba Group Holding Limited (NYSE:BABA) is the biggest online and mobile retailer in the world based on gross merchandise volume. It runs online marketplaces in China, including Tmall (business-to-consumer) and Taobao (consumer-to-consumer).
Alibaba Group Holding Limited (NYSE:BABA)’s most valued cash flow-generating operation is its China commerce retail branch. Other sources of income include local consumer services, cloud computing, digital media and entertainment platforms, Cainiao logistics services, international commerce retail and wholesale, China commerce wholesale, and innovation projects. AliPay, which enables digital payments through smartphones, is just one of the many services and products in its portfolio.
Overall, revenue increased 5.21% year over year in the second quarter of 2025. During the 11-11 Global Shopping Festival, Alibaba Group Holding Limited (NYSE:BABA) announced record-high monthly active customers on Taobao and Tmall, which significantly increased GMV. With a 29% increase in sales, the Alibaba International Digital Commerce (AIDC) division experienced strong growth, pushed mainly by cross-border business operations. The company’s innovation in AI technology was highlighted by the 7% growth in revenue in the cloud segment and the triple-digit growth in revenue from AI-related products for the sixth consecutive quarter. Alibaba’s focus on providing shareholder value is also shown by the successful execution of a share repurchase program, which witnessed its share buyback valued at $10 billion in the first half of the fiscal year, resulting in a 4.4% net drop in the number of shares.
On January 14, 2025, Sands China Ltd., Alipay, and Macau Pass launched the Alipay Tap! service at Sands Resorts Macao. The service will significantly improve Macao tourists’ payment experiences and open up new digital business and marketing opportunities by utilizing innovative payment interaction technology.
Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 14.92 million shares worth $1.58 billion as of Q3.
Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2024 investor letter:
“On 24 September the People’s Bank of China unveiled a massive three part stimulus package involving: (1) slashing the amount of cash banks need to hold in reserve and lowering the main policy interest rate; (2) cutting mortgage rates on existing home loans by 0.5% and reducing down payment requirements for second homes from 25% to 15%; and (3) supporting equity markets by a USD 114b lending pool to encourage companies to buy back shares and non-bank financial institutions to buy local equities (which may be expanded by the same amount two more times)5 . We are flabbergasted. But we shouldn’t be. After all, these types of arrangements have been all too common over the last 15 years. The local equity markets responded with gusto, and for the last week of the quarter the CSI 300 Index (Shanghai and Shenzen listed companies) was up 25.1%. Alibaba Group Holding Limited (NYSE:BABA) was not lost in all this, and returned 26.8% over that one week period. But Alibaba had already performed well so during the whole September quarter it was up a staggering 56.0%. As a result, Alibaba is no longer the cheap stock it once was. It now trades at a premium to our valuation – a valuation which admittedly had been progressively reduced over our holding period as a result of deteriorating business fundamentals. As a result of Alibaba’s significant outperformance, by the end of the quarter it had reached 3.7% of the Fund. We are weighing up our options here, considering the relative risk.”
