5 Cheap Retail Stocks to Buy

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 113

One-Year Average Price Estimate: $145.76

Alibaba Group Holding Limited (NYSE:BABA) has been in the headlines lately after media reports suggested the company plans to split into six publicly traded units. Latest reports say Alibaba Group Holding Limited (NYSE:BABA)’s $20 billion logistics division, Cainiao Network Technology, may be the first of the six units to launch an IPO. Alibaba Group Holding Limited (NYSE:BABA) is launching its restructuring after the comeback of Jack Ma. Alibaba Group Holding Limited (NYSE:BABA)’s average analyst estimate stands at $145.76, which presents a significant upside potential from its current levels.

As of the end of the fourth quarter of 2022, 113 hedge funds tracked by Insider Monkey had stakes in Alibaba Group Holding Limited (NYSE:BABA). The total value of these stakes was about $5.7 billion. The biggest stakeholder of Alibaba Group Holding Limited (NYSE:BABA) was Philippe Laffont’s Coatue Management which had a $441 million stake in the company.

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”