Top 10 Growth Stocks in David Tepper’s Portfolio

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1. Alibaba Group Holding Limited (NYSE:BABA)

Appaloosa Management LP’s Equity Stakes: $1 Billion

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a technology giant specializing in e-commerce, retail, internet, and technology. It provides platforms and services for businesses to market, sell, and operate online. Additionally, it is a top growth stock in Appaloosa Management’s portfolio, offering significant exposure to the Chinese economy.

Alibaba Group Holding Limited (NYSE:BABA) reported solid earnings for the December quarter of 2024. It is increasingly investing in artificial intelligence to enhance its e-commerce and cloud computing offerings. The investments are already paying off, given that Cloud intelligence revenue was up 13% in December. The Chinese internet giant is also starting to collaborate with other top tech firms. In a major victory, Apple has decided to leverage Alibaba’s AI model to power its Apple Intelligence service.

Alibaba Group Holding Limited (NYSE:BABA) is also showing indications of reviving its e-commerce sector in addition to its AI prospects. These efforts began to pay off last quarter, as overall segment sales increased 5% and third-party revenue increased 9%. Growth is also being driven by Alibaba’s emerging ventures, including the cross-border businesses AliExpress and Trendyol, which target local retailers in Turkey and the Middle East.

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 time frame. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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