Is Alibaba Group Holdings Limited (NYSE: Baba) the most promising stock, according to analysts?
Is Alibaba Group Holdings Limited (NYSE: Baba) the most promising stock, according to analysts?
We recently released a list According to analysts, 11 most promising stocks. In this article, we will explore the position of Alibaba Group Holdings Limited (NYSE:BABA) with other promising stocks.
On April 23, JPMorgan Private Banking Co-Investment Strategy Joint Strategy Stephen Parker joined the “Squawk Box” on CNBC to show that investors should now have normal levels of risk in their portfolios. Parker explained that while he fully supports investing in the market, he does recommend that clients focus on sectors that may be more resilient in a downturn to help prevent losses while sustaining for a long time. His benchmark guidance is to maintain normal levels of risk in their portfolios for clients. Those who hold too much cash should invest, while those who overexpose the U.S. market should consider increasing non-U.S. risks. He suggested that this was a period where investors had to feel uncomfortable because policy uncertainty expanded the scope of possible outcomes.
Parker acknowledges that while downside risk is the most important for many investors, there is also potential for upside, especially if there are positive policy surprises, such as clarity on tariffs, which could bring markets back to their heights faster. His view of the S&P 500 is a wide range, with a high-end flat year, with a possible range of 5,700-6,200. This reflects the intensification and difficulty of policy uncertainty in determining individual goals. Parker notes that even though it takes two years for the market to recover to record highs, annual earnings of 8% remain convincing. Reflecting on the beginning of this year, he pointed out that after 2 consecutive years of growth of more than 20%, the market multiple was considered wealthy. There is optimism about deregulation and corporate tax changes, but few people expect the S&P 500 to last for two years from the 6,200 level. Parker further explained that even without the change in pro-business policies, the market could face challenges after such huge gains in the near future. The pullback in the high-performance sector of the US market has brought valuations closer to what he believes is normal, which also lays the foundation for potential upward space.
Our methodology
We screened Finviz stock filters to compile a list of top stocks with high analyst upward potential (at least 35%). Stocks are ranked in the order of their upward potential. We also added hedge fund sentiment to each stock starting in the fourth quarter of 2024, which comes from Insider Monkey’s database.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (sEE is here for more details).
Is Alibaba Group Holdings Limited (NYSE: Baba) the most promising stock, according to analysts?
An e-commerce platform presents various products to online customers.
Number of hedge fund holders: 107
Average upward potential as of April 23: 40.83%
Alibaba Group Holding Ltd. (NYSE:BABA) provides technical infrastructure and marketing scope to help merchants, brands, retailers and other businesses interact with users and customers. It has seven market segments and also operates Taobao and Tmall, the digital retail platform. It also offers Alimama, a proprietary monetization platform.
On March 28, Ruisui analyst James Lee pointed out Alibaba's powerful AI strategy to improve internal productivity and product experience. Alibaba plans to plan a large amount of AI infrastructure spending in the next three years. This is the development of QWEN 2.5 MAX, Alibaba's most advanced LLM to date, as well as applications for various AI tasks. Qwen AI is the LLM family of the company, with over 90,000 derivative models.
In addition, Barclays pointed out that the growth of Alibaba's cloud business is accelerating. Due to the rapid expansion of AI, the Alibaba Group Holding Ltd. (NYSE: BABA) cloud computing division grew by 13% year-on-year in FQ3 2025. As the company continues to sell AI-related services to customers, Barclays expects the profit margins in Alibaba's cloud division to improve. The company maintained a $180 price target and stock's better than stock rating.
Patient capital opportunity equity strategies invest in Alibaba due to their discounted prices and the potential for stimulus in China. It noted the following in its Q1 2025 about Alibaba Group Holdings Limited (NYSE: Baba) Investor's letter:
“Alibaba Group Holdings Co., Ltd. (NYSE: Baba) The rebound in the first quarter after DeepSeek's surprise AI product was released in early January, which caught the market off guard. This development promotes expectations of improving competitiveness in markets that are largely considered “not investable”. Our ongoing transactions on Alibaba have been ongoing with significant discounts for a long time, and we have been trading on Alibaba. As most investors figure out Chinese companies out when evaluating the odds of Chinese stimulus, we see an opportunity to invest in high-quality businesses at the lowest price of rock. During this period, the company launched dividends (return 1.0%) and buyback programs, repurchasing 7% of its shares over the past twelve months. Unfortunately, most of the gains made in the first quarter have reversed after tariff tensions escalated between the United States and China. While the final impact of tariffs remains uncertain, Alibaba has limited exposure to the international market, currently only 12% of revenue outside of China. Although the tariff war has extensively damaged economic activity and may lead to a negative feedback loop of domestic demand, we believe Alibaba is one of the most insulated Chinese companies in this environment. ”
Overall, dad Ranked eighth According to analysts, on our most promising stock list. Although we acknowledge Baba’s growth potential, our belief is that AI stocks provide high returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than Baba but have less than 5 times its revenue, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.
