8 Best Cyclical Stocks to Buy According to Hedge Funds

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Investors: 115

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company specializing in e-commerce, cloud computing, and digital entertainment. The company operates leading platforms such as Taobao, Tmall, Alibaba Cloud, and Alibaba International Digital Commerce (AIDC), catering to businesses and consumers. Alibaba Group Holding Limited (NYSE:BABA) generates revenue through marketplace commissions, advertising, cloud services, and digital media.

Alibaba Group Holding Limited (NYSE:BABA) is placing a strong emphasis on improving the user experience across its platforms, particularly Taobao and Tmall. The company aims to increase purchase frequency and customer loyalty through initiatives such as the 88VIP Club loyalty program. Alibaba Group Holding Limited (NYSE:BABA) is also investing significantly in advanced technology and AI infrastructure to deliver more reliable and cost-effective AI-driven solutions across various industries. The company has implemented industry-standard software service fees and expanded the adoption of Quanzhantui, its AI-powered marketing tool, to help merchants enhance marketing efficiency.

Alibaba Group Holding Limited (NYSE:BABA) is also concentrating on improving the operational efficiency of its unprofitable segments, including local services and digital media and entertainment. Efforts are being made to enhance collaboration among its business units, especially in global logistics, to create a more integrated and streamlined ecosystem.