5 Most Volatile Stocks To Buy Now

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1. Alibaba Group Holding Limited (NYSE: BABA)

Number of Hedge Fund Holders: 135   

Alibaba Group Holding Limited (NYSE: BABA) is a Chinese company that operates as a technology firm primarily in the ecommerce business. It is placed first on our list of 15 most volatile stocks to buy now. The company is preparing to release second quarter earnings results amid concerns around regulatory pressures in China and their impact on Chinese firms listed in the United States. The company has a market cap of $530 billion and posted more than $100 billion in revenue last year. 

On July 13, investment advisory Deutsche Bank kept a buy rating on Alibaba Group Holding Limited (NYSE: BABA) stock but lowered the price target to $281 from $282, noting that the earrings for the firm could be masked by increased investment spending. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE: BABA) with 13.9 million shares worth more than $3.1 billion. 

In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE: BABA) was one of them. Here is what the fund said:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”

You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.

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