1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders as of Q4: 107
Appaloosa Management’s Equity Stake: $1 Billion
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology conglomerate whose operations span e‑commerce, cloud computing, logistics, and digital services. Its core marketplaces, Taobao and Tmall, connect merchants, brands, and consumers across China and abroad. At the same time, Alibaba Cloud underpins its infrastructure offerings, Cainiao Network handles logistics and supply‑chain solutions, and Ele.me delivers food services, all of which together form a comprehensive ecosystem that supports the company’s merchants and end users.
For the quarter ended December 31, 2024, Alibaba Group Holding Limited (NYSE:BABA) delivered an 8% year‑over‑year revenue increase to RMB 280.15 billion ($38.38 billion). Operating income soared 83% to RMB 41.2 billion ($5.65 billion), due in part to reduced impairment of intangible assets and a 4% rise in adjusted EBITA to RMB 54.85 billion ($7.52 billion). Net income attributable to shareholders climbed an impressive 333% to RMB 48.95 billion ($6.71 billion), buoyed by strong operational performance and mark‑to‑market gains on equity investments. Earnings per ADS reached RMB 20.39 ($2.79), and non‑GAAP diluted EPS grew 13% to RMB 21.39 ($2.93). Alibaba Cloud also returned to double‑digit growth, with revenue up 13% year‑over‑year, driven by rapid expansion in AI‑related services.
Looking forward, Alibaba Group Holding Limited (NYSE:BABA) has committed at least RMB 380 billion ($52.4 billion) over the next three years to build out its AI and cloud infrastructure. Eddie Wu, CEO of Alibaba Group, outlined plans to invest heavily in foundational model platforms, AI‑native applications, and the AI transformation of existing businesses.
Founder Jack Ma, speaking at Alibaba Cloud’s fiscal‑year kickoff earlier in April, emphasized that AI should empower rather than replace humanity: “We are not trying to make machines like humans, but rather to enable machines to understand humans, think like humans, and do things that humans cannot do.” Reflecting on Alibaba Group Holding Limited (NYSE:BABA)’s 25‑year history, Ma reiterated the company’s mission to fill technological gaps—building payment services when none existed, investing in logistics, creating cloud infrastructure, and establishing credit systems—all to ensure that technology serves every ordinary person and drives sustainable, human‑centered innovation.
Overall, BABA ranks first among Billionaire David Tepper’s top 10 stock picks. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
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