12 Reddit Stocks with High Potential

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5. Alibaba Group Holding Ltd. (NYSE:BABA)

Number of Hedge Fund Holders: 107

Average Upside Potential as of April 15: 47.83%

Alibaba Group Holding Ltd. (NYSE:BABA) offers technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers. It has a total of seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media & Entertainment, and Innovation Initiatives & Others.

On March 28, Mizuho analyst James Lee pointed out Alibaba’s strong AI strategy. This strategy prepares it for enhanced internal productivity and product experiences. The company has planned substantial AI infrastructure spending over the next 3 years. One instance of this includes the development of Qwen 2.5 Max, which is Alibaba’s most advanced LLM to date with applications across various AI tasks.

The company’s cloud computing division also grew by 13% in FQ3 2025 due to rapid AI expansions. Barclays particularly noted that the growth of Alibaba’s cloud business is accelerating. As the company continues to sell AI-related services to its customers, Barclays anticipates that the margins of Alibaba’s cloud unit are likely to improve going forward, according to Barclays. The firm kept a $180 price target and an Outperform rating on the stock.

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