Why These 15 E-Commerce Stocks Are Skyrocketing So Far In 2025

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1. Alibaba Group Holding Ltd (NYSE:BABA)

Number of Hedge Fund Holders In Q4 2024: 107

Alibaba Group Holding Ltd (NYSE:BABA) is an e-commerce and cloud computing company that is increasingly becoming involved with AI.

The stock is up significantly so far in 2025 after Alibaba reported solid earnings for the December quarter of 2024, with revenue reaching $38.6 billion (280.2 billion yuan). This was an 8% year-over-year increase and marked its fastest revenue growth in over a year.

The company’s Cloud Intelligence Group saw a 13% year-over-year revenue increase, while e-commerce also performed well. Net profit surged to $6.72 billion (48.9 billion yuan).

Also, the DeepSeek spook ended up drawing a lot of attention towards cheap tech stocks in China with their own AI models. Alibaba came up with its own AI model quickly after DeepSeek became viral and said it was better than DeepSeek V3.

The consensus price target of $138.36 implies 3.32% upside.

BABA is up 58.18% year-to-date.

While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 the cheapest AI stock.

READ NEXT: 20 Best AI Stocks to Buy Now and Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025

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