From Nasdaq: 2024-05-21 10:15:00

Alibaba (NYSE: BABA) stock gains favor with billionaire investors like David Tepper and Michael Burry, who increased their stakes in Q1. Tepper now holds it as his top position, while Burry sees it as second to JD.com. The stock is inexpensive, down 50% over five years, with a forward P/E of 10.5. Alibaba holds $85.5 billion in cash and has repurchased $4.8 billion worth in Q1. Management is allowing business units to operate more autonomously, showing signs of a turnaround. Tepper and Burry’s investments in Alibaba represent a bet on China and its recovering economy. Chinese government stimulus measures aim to bolster the economy and housing market, benefiting Alibaba’s e-commerce business. Alibaba is seen as cheap with growth potential, but investors should consider the risks associated with a Chinese company. The Motley Fool Stock Advisor analyst team recommends 10 other stocks over Alibaba for potential high returns. Georffrey Seiler has positions in Alibaba Group, while The Motley Fool has positions in and recommends JD.com and Alibaba Group.



Read more at Nasdaq: Billionaire Investors David Tepper and Michael Burry Just Piled Into Alibaba. Is It Time to Buy the Stock Hand Over Fist?