6) Alibaba Group Holding Limited (NYSE:BABA)
Forward P/E as of March 28: ~13.1x
Number of Billionaire Investors: 17
Number of Hedge Fund Holders: 107
Mizuho Securities increased the price objective on Alibaba Group Holding Limited (NYSE:BABA)’s stock from $140 to $170, maintaining an “Outperform” rating. The revision demonstrated increased confidence in the company’s AI strategy and the potential to fuel future revenue growth and profitability. The firm noted Alibaba Group Holding Limited (NYSE:BABA)’s healthy foundation for AI investment. Also, Mizuho Securities expects that the company’s AI investments are expected to improve internal productivity, resulting in better product recommendations and increased conversion rates.
Reuters reported that Alibaba Group Holding Limited (NYSE:BABA) aims to invest at least $52.44 billion in its cloud computing and AI infrastructure over the upcoming 3 years. The company’s strong emphasis on AI is expected to place it as a leader in next-generation cloud services and e-commerce solutions. AI integration throughout the platforms can result in improved operational efficiency, enhanced user experiences, and new revenue streams for Alibaba Group Holding Limited (NYSE:BABA). With AI becoming central to business operations, the company’s investments can equate to a significant competitive advantage.
Nightview Capital, an investment management company that concentrates exclusively on publicly traded equity strategies, published its Q4 2024 investor letter. Here is what the fund said:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Industries like transportation, healthcare, and logistics are on the brink of massive disruption, and we believe this is a pivotal moment.
Alibaba Group Holding Limited (NYSE:BABA): Core Opportunity” Alibaba’s focus on stabilizing its core businesses, coupled with growth of its cloud and AI divisions, positions the company for a breakout. With 25% of its market cap in cash, We believe Alibaba offers a highly compelling risk / reward opportunity from a valuation perspective.
Competitive Advantage: Core Business Recovery: Alibaba’s e-commerce platforms, including Taobao with 930 million monthly active users, remain instrumental in China’s retail landscape. Revenue grew 5% YoY in the latest quarter, reflecting strategic improvements in user experience and pricing…” (Click here to read the full text)
