5 Best Cloud Computing Stocks to Invest In

4. Alibaba Group Holding Limited (NYSE: BABA)

No of HFs: 156

Total Value of HF Holdings: $17.8 Billion

Ranking 4th on the list of 14 best cloud computing stocks to invest in is Alibaba Group. Founded in 1999 by Jack Ma, the cloud computing company operates the most prominent e-commerce market in China. In the fourth quarter of 2020, the company increased its active users to 779 million, up 2% from 757 million in the third quarter. The cloud computing giant was recently fined $2.8 billion by China after the firm reportedly violated China’s anti-monopoly law. However, the penalty was not likely to damage the growth of Alibaba, with records of solid gains in 2020.

The company’s revenue in 2020 came in at $72 billion. The stock gained 13% over the last twelve months. Citigroup keeps its Buy rating on Alibaba Group Holdings and raises its price target to $345 per share.

Davis Funds mentioned that BABA will maintain its leading position in the e-commerce sector in its Q4 2020 investor letter:

“The current focus of the Chinese government is on e-commerce and consumer finance, impacting companies such as e-commerce leader Alibaba, resulting in the delay of the ANT Group IPO. Our expectation is that while a company like Alibaba will have to eliminate business practices such as exclusive supplier arrangements, it will maintain its leading position in the thriving Chinese e-commerce sector due to its brand, scale, network effects and ability to innovate.”