12 Best Blue Chip Stocks to Buy Under $100

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1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holdings: 115

Stock Price as of January 24: $89.14

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company specializing in e-commerce, cloud computing, and digital entertainment. The company operates prominent platforms such as Taobao, Tmall, Alibaba Cloud, and Alibaba International Digital Commerce (AIDC). Alibaba Group Holding Limited (NYSE:BABA) generates revenue from marketplace commissions, advertising, cloud services, and digital media.

Alibaba Group Holding Limited (NYSE:BABA) is prioritizing enhancements to the user experience on its platforms, particularly Taobao and Tmall. The company aims to boost purchase frequency and customer loyalty through initiatives such as the 88VIP Club loyalty program. Additionally, Alibaba Group Holding Limited (NYSE:BABA) is investing heavily in advanced technology and AI infrastructure to provide reliable and cost-effective AI-driven solutions across industries. The company has introduced industry-standard software service fees and expanded the use of Quanzhantui, its AI-powered marketing tool, to help merchants improve marketing efficiency.

Moreover, Alibaba Group Holding Limited (NYSE:BABA) is focused on improving the operational efficiency of its unprofitable segments, including local services and digital media and entertainment. The company is also enhancing collaboration among its business units, particularly in global logistics, to build a more integrated and streamlined ecosystem.

While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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