Billionaire Ray Dalio’s Bridgewater’s 10 Stock Picks with Huge Upside Potential

8. Alibaba Group Holding Limited (NYSE:BABA)

Bridgewater Associates Stake Value: $21,623,400

Upside Potential as of May 2: 32.90%

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a major Chinese technology conglomerate, operating across e-commerce, cloud computing, logistics, and digital services.

In the last quarter of 2024, Alibaba Group Holding Limited (NYSE: BABA) saw 8% revenue growth to $38.38 billion, with operating income rising 83% to $5.65 billion and adjusted EBITA increasing 4% to $7.52 billion. Net income soared 333% to $6.71 billion, driven by strong investments and core business performance. Earnings per ADS reached $2.79, and non-GAAP EPS grew 13% to $2.93. Alibaba Cloud’s revenue jumped 13% YoY, fueled by demand for AI services. To strengthen its AI and cloud capabilities, Alibaba plans to invest $52.4 billion over three years. CEO Eddie Wu emphasized AI model development, while Chairman Joe Tsai warned about unsustainable AI spending trends.

On April 29, Alibaba Group Holding Limited (NYSE: BABA) launched Qwen 3, an upgraded AI model with hybrid reasoning capabilities, amid rising competition in China’s AI sector. The move follows the success of DeepSeek, a local startup that claims to outperform Western models at lower costs. Alibaba has a Strong Buy rating from 16 analysts, all recommending a buy. The average price target is $167.13, ranging from $146.00 to $190.00, suggesting a 32.90% increase from its current price of $125.76.