5 Risky Stocks to Buy Today

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106

Alibaba Group Holding Limited (NYSE:BABA) is an Hangzhou, China-based diversified technology giant led by Jack Ma. The company excels in artificial intelligence (AI), cloud computing, e-commerce, and many other fields in the technology sector.

Alibaba Group Holding Limited (NYSE:BABA) is at a critical junction as auditors from the US are expected to come to Hong Kong to review the audit material of Alibaba this week. The review will include on-site inspection, interviews, and review of documents. If the company passes the audit, it will unlock significant upside potential for the shares as it would reiterate the fact that Alibaba Group Holding Limited (NYSE:BABA) is a solid business with stellar margins and strong historical growth. On the other hand, if the audit raises any red flags, it could unlock further downside potential for Alibaba Group Holding Limited’s (NYSE:BABA) stock. These factors make Alibaba Group Holding Limited (NYSE:BABA) one of the suggested risky stocks to buy today.

Here’s what First Eagle Investments said about Alibaba Group Holding Limited (NYSE:BABA) in its Q2 2022 investor letter:

“The shares of Chinese e-commerce giant Alibaba advanced on signs that the Chinese government may be starting to relax its regulatory crackdown on the technology sector. There have been reports that Beijing’s more accommodative stance may re-open the door to the initial public offering of Ant Group, a leading Chinese online payment platform whose planned 2020 IPO was scuttled by regulators. Alibaba owns about one-third of Ant. We continue to like Alibaba’s core assets, including its cloud business, which continues to generate strong cash flows.”