10 Michael Burry Stocks with Huge Upside Potential

5. Alibaba Group Holding Limited (NYSE:BABA)

Scion Asset Management’s Q4 Stake: $ million

Analyst Upside as of May 9: 32.90%

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a technology and e-commerce company that serves consumers and small business owners. It is also a market leader in digital media, logistics, and cloud computing. Nonetheless, the Chinese company has struggled to develop in recent years due to regulatory hurdles and trade and technology tensions between the United States and China.

On April 14, Barclays reaffirmed its Overweight rating on Alibaba Group Holding Limited (NYSE:BABA), keeping a price target of $180. The firm’s analyst emphasized the rapid expansion of the company’s cloud business, which is projected to continue throughout the year. According to Barclays, cloud margins will likely stay consistent as Alibaba Group Holding Limited (NYSE:BABA) focuses on improving consumer adoption of AI during the industry’s “land grab” phase.

Alibaba Group Holding Limited (NYSE:BABA)’s cloud segment provides AI services such as image and audio recognition, natural language processing, and machine learning platforms. The company’s Qwen AI model has also gained significant popularity. Over 90,000 spin-off models have been developed, and over 290,000 users use its APIs through Alibaba Cloud.