5 Internet Retail Stocks To Buy Now

3. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 105   

Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People’s Republic of China and internationally. On November 17, Alibaba posted earnings for the second quarter of 2022, reporting earnings per share of $1.82, beating market estimates by $0.17. The revenue over the period was $29.12 billion, up 3.0% compared to the revenue over the same period last year and missing market estimates by $490 million.

On November 18, Truist analyst Youssef Squali maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and lowered the price target to $120 from $125, noting that the company’s second-quarter results demonstrated that it is making strong strides in protecting margins while managing through a tough macro environment.  

At the end of the third quarter of 2022, 105 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Alibaba Group Holding Limited (NYSE:BABA), compared to 106 in the preceding quarter worth $7.4 billion. 

In its Q3 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and a deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”