5 Best Cash App Stocks To Buy Now

4. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 100

Alibaba Group Holding Limited (NYSE:BABA) is one of the world’s largest e-commerce platforms. Its fintech arm called Ant Group was scheduled to make the world’s largest IPO in 2020, with a $35 billion dual listing in Shanghai and Hong Kong, which was eventually called off by Chinese regulatory authorities. This fintech division offers the AliPay electronic payment system, which is used all over China and is integrated with Alibaba.com platforms such as AliExpress, Taobao Marketplace, and Tmall.

On May 27, Barclays analyst Jiong Shao lowered the firm’s price target on Alibaba Group Holding Limited (NYSE:BABA) to $200 from $220 and maintained a ‘Buy’ rating on the company shares. The analyst holds that “once the dust settles,” Alibaba should remain a dominant e-commerce platform in China that boasts “impressive earnings power.”

Alibaba Group Holding Limited (NYSE:BABA) posted an EPS of $1.18 for the first quarter, beating consensus estimates by $0.10. The company’s revenue over the quarter was recorded at $30.3 billion, above analysts’ forecasts by $555.4 million.

Investors were seen buying up on Alibaba Group Holding Limited (NYSE:BABA) stock. At the end of the first quarter, 100 hedge funds were long on the company shares, as compared to 96 hedge funds a quarter ago. The firm’s largest shareholder in the first quarter was Fisher Asset Management, with 14.44 million shares priced at $1.57 billion.

However, investment firm Baron Funds expressed bearish sentiment when talking about Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2022 investor letter. It said:

“We have eliminated 6 holdings during the first quarter (including) Alibaba. We have sold our Alibaba Group Holding Limited position as the company continues to face competitive challenges and regulatory pressures remain, making it difficult (if not impossible) to appropriately assess the range of outcomes and associated probabilities for the future profitability of the business.”