12 Best ADR Stocks to Buy According to Hedge Funds

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a China-based multinational technology company operating across e-commerce, cloud computing, digital media, and logistics. Its core businesses include online retail platforms like Taobao and Tmall, which connect consumers and merchants across China, and Alibaba Cloud, one of Asia’s largest cloud service providers. The company also operates Cainiao for logistics and AliExpress for cross-border e-commerce targeting international markets. It supports its ecosystem with digital payment services through Ant Group (in which it holds a stake) and data-driven marketing. BABA ranked first on our recent list of 7 Cheap Global Stocks to Buy Right Now.

Alibaba Group Holding Limited (NYSE:BABA) delivered solid results in 2024, showcasing renewed momentum across its core operations following a year of strategic transformation. Its domestic e-commerce platforms, Taobao and Tmall, posted a 9% YoY increase in customer management revenue, fueled by gains in both user acquisition and order volume. The cloud division also saw a notable uptick, with revenue growth reaching 13% and AI-driven product lines sustaining triple-digit annual growth for the sixth consecutive quarter. Backed by a robust financial position – including a net cash reserve of RMB 378.5 billion (USD 51.9 billion) – BABA remains well-positioned to support its future plans. It is among the best ADR stocks on our list.

Alibaba Group Holding Limited (NYSE:BABA) has sharpened its strategic priorities around three key areas: domestic and global e-commerce, AI combined with cloud services, and internet platform businesses. To support this vision, the company is set to ramp up investments in AI infrastructure over the next three years, with spending anticipated to surpass the total of the past decade. It has also continued its shift away from offline retail, finalizing deals to exit Sun Art and Intime for up to $1.6 billion and $1 billion, respectively. International e-commerce sustained strong momentum, with management expecting the segment to achieve its first profitable quarter in the upcoming fiscal year. Efficiency gains were also evident in other areas, such as Amap, which turned profitable during the quarter.