Goldman Sachs Stock Portfolio: Top 5 Large-Cap Stock Picks

1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese technology and e-commerce conglomerate. In Q2 2022, the Goldman Sachs stock portfolio had 25.3 million shares of Alibaba Group Holding Limited (NYSE:BABA) worth $2.8 billion, representing 0.65% of the total 13F securities. 

On November 1, Truist analyst Youssef Squali maintained a Buy recommendation on Alibaba Group Holding Limited (NYSE:BABA) but slashed the firm’s price target on the shares to $125 from $135. The company is forecasted to return to positive growth in Q2 2023 amid consistent macro constraints. China retail sales data shows improving trends from July onwards, and growth should speed up more in the second half of FY23, the analyst added.

According to Insider Monkey’s data, 106 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA) at the end of June 2022, compared to 100 funds in the prior quarter. Ken Fisher’s Fisher Asset Management featured as the largest stakeholder of the company, with 14.5 million shares worth $1.6 billion. 

Here is what Artisan Partners specifically said about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) declined 30% during the quarter primarily due to the continued impact of China’s zero-COVID policy. In August, more than 70 Chinese cities with 300 million combined population were in some state of lockdown. Unfortunately, this comes on top of the other regulatory and competitive challenges that had previously been pressuring Alibaba’s shares over the past year. The painful decline in the share price has made Alibaba a poor investment so far—for good reason. In the second quarter, core online e-commerce revenues were down 10%, and adjusted profits declined 18%. That said, Alibaba shares are priced for this terrible environment to continue forever, and many of the exogenous issues should eventually abate. Signs suggest the regulatory pressure is already easing. The government has been stepping in with economic stimulus. The zero-COVID policy must eventually end. In addition, Alibaba’s management has taken important steps to improve profitability by reducing investments in loss-making new business ventures. When the environment improves, we believe that Alibaba’s core business franchises will return to growth, and profits will follow. The disconnect between Alibaba’s price and value continues to be one of the biggest we have seen in our careers.”

You can also take a look at 10 Best Infrastructure Stocks To Buy Now and 10 Best Natural Gas Dividend Stocks To Buy. 

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