3. Alibaba Group Holding Limited (NYSE:BABA)
Forward P/E as on February 28: ~13.2x
10-Year Sales Growth: ~30.0%
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and marketing reach to support merchants, brands, retailers, and other businesses to engage with their users and customers. CMB International Securities analyst Saiyi He maintained a “Buy” rating on the company’s stock on February 21, setting a price target of $157.70. The rating stems from several factors indicating a favourable outlook for Alibaba Group Holding Limited (NYSE:BABA). It reported healthy Q3 2025 results, with total revenue exceeding expectations and reflecting robust YoY growth. This was mainly aided by healthy performance of both the Taobao & Tmall Group and the Cloud Intelligence Group, which surpassed the market expectations in adjusted EBITA, says the analyst.
In the quarter ended December 31, 2024, the company’s revenue came in at RMB280,154 million (US$38,381 million), reflecting a rise of 8% YoY. The analyst added that growth in Alibaba Group Holding Limited (NYSE:BABA)’s cloud revenue, courtesy of higher demand for AI-related services, aids a healthy future for its cloud segment. The Alibaba International Digital Commerce Group is projected to witness profitability earlier than previously expected, leading to a brighter overall earnings outlook, says Saiyi He.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall as well as businesses in logistics, local services, digital media, and cloud. Shares fell on continued weakness in core domestic commerce growth. Quarterly results were roughly in line with expectations, with relative strength in profitability, but the timing for acceleration in core gross merchandise value is still unclear. 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.”
