5 Best E-Commerce Stocks to Invest In

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 112

Alibaba Group Holding Limited (NYSE:BABA) ranks 2nd in our list of the best ecommerce stocks to buy now. A total of 112 hedge funds were long Alibaba Group Holding Limited (NYSE:BABA), as per Insider Monkey’s database of 910 elite money managers. The biggest stake in Alibaba Group Holding Limited (NYSE:BABA) was owned by David Tepper’s Appaloosa Management LP which had a $373 million stake in the company.

Alibaba Group Holding Limited (NYSE:BABA) is pouring money into Chinese AI startups. Bloomberg reported that Alibaba Group Holding Limited (NYSE:BABA), along with Tencent (OTCPK:TCEHY) (OTCPK:TCTZF),  was among the entities that invested $342 million in Chinese artificial intelligence startup Beijing Zhipu Huazhang Technology this year. Alibaba Group Holding Limited (NYSE:BABA) also joined Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) for a $300 million funding round for AI company Baichuan Intelligent Technology.

L1 Long Short Fund made the following comment 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.”