Billionaire David Tepper’s Top 10 Stock Picks Heading into 2025

Page 9 of 9

1. Alibaba Group Holding Limited (NYSE:BABA)

Appaloosa Management LP’s Stake Value: $1.06 Billion

Number of Hedge Fund Holders: 115

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese tech giant that provides technology infrastructure. It also offers market reach, allowing merchants, brands, and retailers to connect with customers and do business. It operates the largest e-commerce platform with a 46% market share in China. The company has also set sights on South Korean e-commerce opportunities with a 71 million investment in ably.

Alibaba Group Holding Limited (NYSE:BABA) delivered solid September quarter results on November 15, which was helped by robust growth in gross merchandise volume for Taobao and Tmall Group. Revenue in the quarter was up 5% year-over-year to $32.4 billion as net income increased 58% to $6.07 billion. Overseas online shopping businesses such as Lazada and Aliexpress were also on a roll, delivering a 29% year-over-year revenue increase to $4.34 billion.

Alibaba Group Holding Limited (NYSE:BABA) has been positioning itself as a leader in the booming artificial intelligence space. The company is leveraging AI features to strengthen its cloud computing solutions and attract customers. The efforts are already paying off, as the Cloud Intelligence Group posted a 7% increase in sales to $4.1 billion.

Here is what Oakmark International Fund said about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2024 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) was the top contributor during the quarter. The China-headquartered consumer discretionary company’s stock price rallied following the announcement of a multipronged stimulus package by the Chinese government. Despite the stock’s strong performance for the quarter, we continue to believe there is upside in the name and that the market is not fully pricing in the turnaround potential for the e-commerce business or other optionality the company possesses.”

While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA), our conviction lies in the belief that under the radar 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9