We recently published a list of Top 10 Stocks to Buy According to Think Investments. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against other top stocks to buy according to Think Investments.
Think Investments is an investment firm based in San Francisco, with additional offices in Singapore and India. The firm focuses on long-term investments in both public and private companies, emphasizing creative research to identify high-potential opportunities. Specializing in technology-driven early-stage businesses, Think Investments partners with its strong management teams to build differentiated companies that generate high returns on invested capital. With a deep understanding of emerging markets and global technology, the firm is well-positioned to navigate complex investment landscapes.
Founded in 2013 by Shashin Shah, Think Investments has established itself as a key player in global markets. The firm has over $1 billion invested in Indian companies operating in the financial services, healthcare, technology, and consumer sectors. Think’s investment strategy is guided by Shah’s extensive experience in global equity markets, ensuring a disciplined approach to capital allocation. The firm’s commitment to long-term value creation has made it a trusted partner for relatively young companies looking to scale efficiently.
Shashin Shah, Founder and Managing Partner, brings decades of expertise in global investing. Before launching Think Investments, he was a partner at Valiant Capital, where he managed multiple international markets, including India, the U.S., Europe, Asia, the Middle East, and North Africa. Shah also worked at Blue Ridge Capital and Morgan Stanley, further honing his investing skills. His academic background includes a bachelor’s degree in computer engineering from the University of Mumbai and an MBA from the University of Texas, equipping him with a strong analytical and financial foundation.
In addition to leading Think Investments, Shah plays an active role in shaping the growth of innovative companies. He currently serves on the boards of Chaayos, a tea café chain, and Dream11, India’s leading fantasy sports platform. His leadership and strategic insights continue to drive Think’s success, solidifying its reputation as a premier investment firm in global markets.
As of its latest filing for the fourth quarter of 2024, Think Investments reported managing approximately $454.51 million in 13F securities, of which the firm’s top ten holdings account for 80.57%.
Our Methodology
The stocks discussed below were picked from Think Investments’ Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An e-commerce platform displaying a wide range of products to customers online.
Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders as of Q4: 107
Think Investments’ Equity Stake: $20.56 Million
Alibaba Group Holding Limited (NYSE:BABA), a Chinese multinational technology conglomerate, dominates the e-commerce, cloud computing, logistics, and digital services sectors. The company provides a sound infrastructure that supports merchants, brands, and businesses across China and in international markets. Alibaba’s key platforms include Taobao and Tmall for e-commerce, Alibaba Cloud for cloud computing, Cainiao Network for logistics, and Ele.me for food delivery services.
Alibaba Group Holding Limited (NYSE:BABA) recently reported strong financial results for Q4 2024, showcasing a renewed growth trajectory and improved operational efficiency. For the quarter that ended December 31, 2024, Alibaba recorded revenue of RMB 280.15 billion ($38.38 billion), an 8% year-over-year increase. Income from operations surged by 83% YoY to RMB 41.2 billion ($5.65 billion), driven by reduced impairment of intangible assets and improved adjusted EBITA, which grew 4% to RMB 54.85 billion ($7.52 billion). Net income attributable to shareholders jumped 333% year-over-year to RMB 48.95 billion ($6.71 billion), reflecting strong operational performance and mark-to-market gains from equity investments. Earnings per ADS reached RMB 20.39 ($2.79), with non-GAAP diluted earnings per ADS increasing by 13% year-over-year to RMB 21.39 ($2.93). Alibaba’s cloud computing division showed strong growth as well, with revenue growing 13% year-over-year, fueled by the rapid expansion of AI-related services.
Beyond e-commerce, Alibaba Group Holding Limited (NYSE:BABA) remains committed to artificial intelligence and cloud infrastructure investments, intending to spend at least 380 billion yuan ($52 billion) in the technology over the next three years. However, the company’s Chairman, Joe Tsai, expressed concerns over the scale of AI investments in the U.S., suggesting that current spending levels may be excessive and could signal the start of an AI investment bubble. With strategic investments in AI, cloud computing, and core e-commerce operations, Alibaba Group Holding Limited (NYSE:BABA) is positioning itself for sustained growth in an evolving global market.
Nightview Capital stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Industries like transportation, healthcare, and logistics are on the brink of massive disruption, and we believe this is a pivotal moment.
Alibaba Group Holding Limited (NYSE:BABA): Core Opportunity” Alibaba’s focus on stabilizing its core businesses, coupled with growth of its cloud and AI divisions, positions the company for a breakout. With 25% of its market cap in cash, We believe Alibaba offers a highly compelling risk / reward opportunity from a valuation perspective.
Competitive Advantage: Core Business Recovery: Alibaba’s e-commerce platforms, including Taobao with 930 million monthly active users, remain instrumental in China’s retail landscape. Revenue grew 5% YoY in the latest quarter, reflecting strategic improvements in user experience and pricing…” (Click here to read the full text)
Overall, BABA ranks 8th on our list of top stocks to buy according to Think Investments. While we acknowledge the potential of BABA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.