5 Cheap Chinese Stocks to Buy Now

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1. Alibaba Group Holding Limited (NYSE:BABA)

Stock Price as of May 31: $96.05

Hedge Fund Holders: 100

Alibaba Group Holding Limited (NYSE:BABA) is a diversified technology company that specializes in e-commerce and is also involved in other businesses related to digital payments, cloud computing, and digital entertainment.

Shyam Patil at Truist reiterated his target price of $185 on Alibaba Group Holding Limited (NYSE:BABA) stock with a Positive rating. The analyst highlighted that the business would face short-term headwinds in the form of macroeconomic uncertainty, regulatory overhang, and the impact of the most recent COVID-19 related lockdowns in China. However, Alibaba Group Holding Limited (NYSE:BABA) has shared that it’s noting ease in challenges related to the supply chain and an improved consumer spending pattern.

Alibaba Group Holding Limited (NYSE:BABA) staged a strong rally in stock price last week after reporting better-than-expected results for Q1 2022 despite the COVID-19 related lockdowns. The company reported revenue of $32.2 billion as opposed to the analysts’ forecast of $29.9 billion. As compared to Amazon, Alibaba Group Holding Limited (NYSE:BABA) is trading at significantly lower multiples, which makes it a cheap stock for investors. Furthermore, the stock gives a significant exposure to the second biggest economy in the world.

Here’s what Baron Funds said about Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2022 investor letter.

“We have eliminated 6 holdings during the first quarter (including) Alibaba. We have sold our Alibaba Group Holding Limited position as the company continues to face competitive challenges and regulatory pressures remain, making it difficult (if not impossible) to appropriately assess the range of outcomes and associated probabilities for the future profitability of the business.”

You can also take a peek at the 10 Best ETFs to Invest In for Retirement and 10 Best Stocks To Buy For Beginners Right Now.

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