13 Best Cheap Stocks to Invest in for Beginners

4. Alibaba Group Holding Limited (NYSE:BABA)

Forward P/E: 14.62

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments. The company ranks fourth on our list of the best cheap stocks to buy now for beginners.

Alibaba Group Holding Limited (NYSE:BABA) will announce its fiscal Q4 2025 results on May 15, and analysts expect EPS of $1.78 on revenues of $33.32 billion. Ahead of the earnings release, Morgan Stanley analyst Gary Yu gave the company a Buy rating, setting a price target of $180 per share that implies a notable 36.7% upside potential from current levels.

The analyst called Alibaba Group Holding Limited (NYSE:BABA) a “Catalyst-Driven Idea,” telling investors that he thinks the company would benefit from “robust” China AI inference demand as both an “adopter” with its applications and an “AI enabler” with its cloud offerings.

The analyst expects AliCloud to be poised for growth due to the surging demand for AI inference, while other hyperscalers focus on internal demand. This signals AliCloud out as “a unique CSP with sizable allocation for external customers.” The analyst also expects Alibaba Group Holding Limited’s (NYSE:BABA) next share price catalyst to be the upcoming cloud revenue growth.