5 Best Consumer Cyclical Stocks To Buy Now

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 112

Alibaba Group Holding Limited (NYSE:BABA) is a broad-line retail company operating an e-commerce platform. It is based in China.

Alibaba Group Holding Limited (NYSE:BABA) had 112 hedge funds long its stock in the second quarter, with a total stake value of $4.1 billion.

A Buy rating and a $135 price target were maintained on Alibaba Group Holding Limited (NYSE:BABA) on August 11 by Youssef Squali at Truist Securities.

L1 Capital said the following about Alibaba Group Holding Limited (NYSE:BABA) in its second-quarter 2023 investor letter:

Alibaba Group Holding Limited (NYSE:BABA) (Long -18%) shares weakened in recent months as Chinese reopening strength faded and macro-economic datapoints began sequentially declining. Nevertheless, we believe the Chinese government will use consumption as a key lever to reinvigorate the economy post-COVID lockdowns. Alibaba remains a high-quality business with leading positions in both eCommerce and Public Cloud, and management is taking proactive steps to unlock shareholder value. It has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media, and Entertainment Group. Each group will be managed independently, with a separate CEO and board, have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this restructure will be a strong positive catalyst to unlock the sum-of-the-parts valuation upside in the company.”

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