10 Best Stocks to Buy Now For the Long Term

7. Alibaba Group Holding Limited (NYSE:BABA)

10-Year Sales Growth: 30.07%

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese conglomerate primarily focused on e-commerce, cloud computing, logistics, digital media, and financial technology. On March 4, John Choi from Daiwa maintained a Buy rating on the stock with a price target of $170.

The analyst noted that he likes the company’s strategic focus on AI and cloud computing. Alibaba Group Holding Limited’s (NYSE:BABA) Qwen series of large language models and its open-source strategy are driving growth in the public cloud sector. These models are widely adopted, with over 90,000 derivative models developed globally, making Qwen a significant player in AI innovation. Moreover, the company’s collaboration with DeepSeek enhances its ability to deploy high-efficiency AI models. As a major client, Alibaba is well-positioned to benefit from China’s growing demand for AI computing infrastructure. Choi highlighted that the company is investing $53 billion over three years into AI infrastructure, including data centers and GPU-based technologies, signaling its commitment to becoming a global AI leader. Alibaba Group Holding Limited (NYSE:BABA) has grown its revenue by more than 30% over the past 10 years, thereby making it one of the best stocks to buy now for long term.

Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:

“In early November the Chinese government announced further stimulus by way of a USD 1.4 trillion package to bail out local government’s debt. This appeared to underwhelm the equity market. So, Alibaba Group Holding Limited’s (NYSE:BABA) resurgence last quarter (when it was up 56.0%), could not be maintained, and the share price fell 25.1% in the December quarter. It is undoubtedly cheap on most metrics, and trades at a discount to our valuation. It currently accounts for 3.0% of the Fund.”