Is Alibaba (BABA) a Cheap NYSE Stock to Invest in Now?
Alibaba Group Holding Ltd. (NYSE:BABA) is a technology company with a dominant presence in e-commerce, serving both consumers and businesses. In the FQ2 2025, the Cloud Intelligence Group’s revenue reached RMB 29.6 billion ($4.2 billion), which was a 7% year-over-year increase. The Cloud Intelligence Group focuses on cloud computing and AI services. The AI-related products here achieved triple-digit year-over-year growth for the fifth consecutive quarter. Overall revenue, excluding Alibaba consolidated subsidiaries, also grew by 7%, driven by a double-digit expansion in public cloud revenue.
Alibaba appears to scrap earlier breakup plan
The company plans to continue investing heavily in AI infrastructure to capitalize on the growing demand for AI-driven cloud services. This aims to solidify Alibaba Group Holding Ltd.’s (NYSE:BABA) position as a leading provider of AI-powered cloud solutions and drive further growth in the future.
Oakmark International Fund stated the following regarding 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.”
Overall, BABA ranks 1st on my list of cheap NYSE stocks to invest in now. While i acknowledge the growth potential of BABA, my conviction lies in the belief that AI stocks hold great promise for delivering high 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
Enjoy up to S$504 worth of perks upon signing up. Download the Tiger Trade APP >> Open An Account Now
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
