1) Alibaba Group Holding Limited (NYSE:BABA)
Scion Asset Management’s Stake Value: $11,160,000
Number of Hedge Fund Holders: 91
Alibaba Group Holding Limited (NYSE:BABA)’s core e-commerce business is the bright spot, which should continue to strengthen its competitive positioning. Moving forward, the company’s strong brand recognition, ecosystem diversity, and market reach should continue to act as primary tailwinds. The investments in international commerce demonstrate Alibaba Group Holding Limited (NYSE:BABA)’s ambition to improve its global footprint. Its strategy targets to replicate domestic success in overseas markets.
Alibaba Group Holding Limited (NYSE:BABA) has been positioning itself for future growth with the help of new initiatives in advertising and technology services. Its new advertising platform continues to gain traction, with Wall Street anticipating it to contribute significantly to revenue growth. Furthermore, the platform demonstrates a strategic move to diversify revenue streams and capitalize on Alibaba Group Holding Limited (NYSE:BABA)’s vast user base.
The introduction of new technology service fees should fuel the company’s financial performance. These fees, together with the advertising platform, can result in re-acceleration in Customer Management Revenue (CMR) growth.
Analysts at Bank of America upped their price target on the shares of Alibaba Group Holding Limited (NYSE:BABA) from $106.00 to $124.00, giving a “Buy” rating on 9th October. Oakmark Funds, advised by Harris Associates, released its third-quarter 2024 investor letter. Here is what the fund said:
“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 BABA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued 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.
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