15 Best Cheap Stocks to Buy for 2025

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1. Alibaba Group Holding Limited (NYSE:BABA)

Forward P/E Ratio as of January 15: 8.49

Number of Hedge Fund Investors: 115

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company specializing in e-commerce, cloud computing, and digital entertainment. The company’s platforms such as Taobao and Tmall, Alibaba Cloud, and Alibaba International Digital Commerce (AIDC) serve consumers, small businesses, and large enterprises.

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

Alibaba Group Holding Limited (NYSE:BABA) is also focused on improving the operational efficiency of its unprofitable businesses, including local services and digital media and entertainment. The company is making efforts to enhance synergies among its various 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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