Alibaba (BABA) Faced Sharp Decline in Q4 After Strong Previous Quarter

Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, The Fund was up 1.3% in EUR terms and 5.4% in AUD terms but down 5.9% in USD terms. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Conventum – Alluvium Global Fund emphasized stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was 35.20%, and its shares gained 90.28% of their value over the last 52 weeks. On March 6, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $139.95 per share with a market capitalization of $344.39 billion.

Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:

“In early November the Chinese government announced further stimulus by way of a USD 1.4 trillion package to bail out local government’s debt. This appeared to underwhelm the equity market. So, Alibaba Group Holding Limited’s (NYSE:BABA) resurgence last quarter (when it was up 56.0%), could not be maintained, and the share price fell 25.1% in the December quarter. It is undoubtedly cheap on most metrics, and trades at a discount to our valuation. It currently accounts for 3.0% of the Fund.”

Is Alibaba Group Holding Limited (BABA) the Cheap Chinese Stock to Buy Now?

An e-commerce platform displaying a wide range of products to customers online.

Alibaba Group Holding Limited (NYSE:BABA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the fourth quarter compared to 115 in the third quarter. Alibaba Group Holding Limited’s (NYSE:BABA) consolidated revenue for fiscal third quarter of 2025 was RMB 280.2 billion, an 8% rise from previous year’s same quarter. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE: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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Alibaba Group Holding Limited (NYSE:BABA) and shared the list of the best cheap Chinese stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.