Is Alibaba Group Holding Limited (BABA) the Best Low Volatility Stock to Buy Now?
From Yahoo Finance: 2025-04-20 09:21:00
Alibaba Group Holding Limited (NYSE:BABA) is among the best low volatility stocks to buy now, standing out in a turbulent US stock market. The company’s innovative AI, DeepSeek, rivals US competitors and has led to market sell-offs. Despite trade tensions and tariffs, BABA’s strong performance and focus on cloud computing and AI make it a promising investment.
The Federal Reserve maintains interest rates between 4.25% and 4.50%, amidst a landscape of stagflation in the US economy. Market volatility is high, with the Cboe Volatility Index (VIX) at 32.64%. Low-risk, low-volatility stocks are outperforming the market, proving to be a safe haven for investors during uncertain times.
Alibaba Group Holding Limited (NYSE:BABA) has a 5-year monthly beta of 0.23 and is held by 107 hedge funds. The company’s focus on cloud computing, AI, and e-commerce has positioned it as a leader in the technology sector. Despite trade tensions, BABA’s market share in the Asia-Pacific region is expected to shield it from the impact of US tariffs.
For the quarter ending Q3 2025, BABA reported revenue growth of 6.67% YoY at $38.6 billion, outperforming analyst estimates. While BABA ranks 5th on the list of best low volatility stocks to buy now, the potential for higher returns in AI stocks remains compelling. Investors seeking promising AI stocks should explore opportunities beyond BABA for greater profitability.
Overall, Alibaba Group Holding Limited (NYSE:BABA) remains a strong investment option, with a YTD share price increase of over 28%. Despite market volatility and trade tensions, BABA’s solid performance and strategic focus on technology and e-commerce make it a resilient choice for investors seeking stability and long-term growth.
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