10 Best Chinese Stocks to Buy According to Billionaires

3. Alibaba Group Holding Limited (NYSE:BABA)

No. of Billionaire Investors: 17

Total Billionaire Stake: $2.61 Billion

No. of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a leading Chinese multinational technology company with strong market positions in e-commerce, cloud computing, and digital payments. It also has operations in logistics, entertainment, and enterprise solutions. The company’s primary businesses include Alibaba, Taobao, Tmall, and Alibaba Cloud, which together handle millions of businesses and consumers worldwide.

The company has committed nearly $53 billion towards developing AI and cloud computing infrastructure over the next three years. Alibaba’s cloud business continues to gain momentum, soaring by 13% year-over-year in Q4 2024, with AI-related revenue recording a triple-digit growth for the sixth consecutive quarter. The company’s overall profitability remains solid, with adjusted EBITA margins around 20%, driven by robust Cloud Intelligence and TTG’s EBITA growth.

Alibaba Group Holding Limited (NYSE:BABA) is well-positioned to take advantage of the growing AI and cloud market, backed by its planned infrastructure investments. In addition, the company’s FCF remains solid.

Baron Funds, an investment management firm, shared its “Baron Emerging Markets Fund” Q4 2024 investor letter, maintaining a positive view on Alibaba despite its underperformance in the last quarter of 2024. They commented:

“We retain conviction that Alibaba is well positioned to benefit from China’s ongoing growth in online commerce and cloud in China, though competitive market concerns remain.”