1. Alibaba Group Holding Limited (NYSE:BABA)
Forward P/E ratio as of February 24th: 13.13x
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is China’s leading e-commerce and cloud computing powerhouse, operating a vast digital ecosystem that spans online retail, logistics, fintech, and enterprise services. Its core e-commerce platforms, Taobao and Tmall, dominate China’s online shopping landscape, while Alibaba Cloud is a key player in Asia’s cloud infrastructure market. The company has faced regulatory pressures and shifting macroeconomic conditions in recent years, prompting strategic restructuring to enhance agility and unlock shareholder value.
In the latest 3Q 2025, Alibaba Group Holding Limited (NYSE:BABA) demonstrated accelerating growth momentum in its core businesses after a year of transformation, with largely completed divestments of offline assets. The company’s cloud business pursued an integrated AI plus cloud strategy, with AI-related product revenue maintaining triple-digit YoY growth for the sixth consecutive quarter. In e-commerce, Taobao and Tmall showed strong growth in new consumers and orders, with CMR growing 9% year-over-year and 88 VIP members reaching 49 million. The international e-commerce business maintained strong growth with improved operating efficiency, with AIDC expected to achieve its first quarter of profitability in the next fiscal year.
Looking ahead, management plans significant investments in three key areas over the next three years: infrastructure for AI and cloud computing, AI foundation models and AI native applications, and transforming existing businesses with AI. Alibaba Group Holding Limited (NYSE:BABA)’s planned investment in cloud and AI infrastructure over the next 3 years is set to exceed what they have spent over the past decade. Financially, the company reported total consolidated revenue of RMB 280.2 billion, an increase of 8%, with consolidated adjusted EBITDA increasing 4% to RMB 54.9 billion. The company maintains a strong net cash position of RMB 378.5 billion ($51.9 billion), providing sufficient resources for its planned AI investments. At the same time, despite the accelerating business outlook, BABA trades at a cheap 13.13x forward P/E, which makes it one of the best cheap global stocks to invest in.
Overall Alibaba Group Holding Limited (NYSE:BABA) ranks first on our list of the 7 cheap global stocks to buy right now. While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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