10 Cheap NYSE Stocks To Invest In Now

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1. Alibaba Group Holding Ltd. (NYSE:BABA)

Current Forward P/E as of December 16: 9.08

Number of Hedge Fund Holders: 115

Alibaba Group Holding Ltd. (NYSE:BABA) is a technology company with a dominant presence in e-commerce, serving both consumers and businesses. Its diverse portfolio extends beyond e-commerce and includes cloud computing, logistics, digital media, and entertainment.

In the FQ2 2025, the Cloud Intelligence Group’s revenue reached RMB 29.6 billion ($4.2 billion), which was a 7% year-over-year increase. The Cloud Intelligence Group focuses on cloud computing and AI services. The AI-related products here achieved triple-digit year-over-year growth for the fifth consecutive quarter. Overall revenue, excluding Alibaba consolidated subsidiaries, also grew by 7%, driven by a double-digit expansion in public cloud revenue.

The company plans to continue investing heavily in AI infrastructure to capitalize on the growing demand for AI-driven cloud services. This aims to solidify Alibaba Group Holding Ltd.’s (NYSE:BABA) position as a leading provider of AI-powered cloud solutions and drive further growth in the future.

Oakmark International Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2024 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) was the top contributor during the quarter. The China-headquartered consumer discretionary company’s stock price rallied following the announcement of a multipronged stimulus package by the Chinese government. Despite the stock’s strong performance for the quarter, we continue to believe there is upside in the name and that the market is not fully pricing in the turnaround potential for the e-commerce business or other optionality the company possesses.”

While we acknowledge the growth potential of Alibaba Group Holding Ltd. (NYSE:BABA), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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