From Nasdaq: 2025-02-20 11:20:56

Alibaba Group’s stock (NYSE: BABA) surged 10.4% on Thursday, outperforming the S&P 500 and Nasdaq. The company reported strong Q4 results, with net income of $6.72 billion and revenue of $38.46 billion, beating estimates. Key growth areas were Cloud Intelligence and International Digital Commerce, driving 13% and 32% year-over-year growth, respectively.

Trading at $137, Alibaba’s stock is below its 2020 high of $306.16. Despite recent challenges, including antitrust actions, the company has stabilized its e-commerce sales and embraced AI. With a low forward P/E ratio of 13, Alibaba is undervalued compared to U.S. counterparts like Amazon (P/E of 34.5).

Considerations for investing in Alibaba Group include the advice from The Motley Fool’s Stock Advisor team, who identified 10 top stocks for investors, excluding Alibaba. The service has outperformed the S&P 500 since 2002, with significant returns for investors. Past recommendations, like Nvidia in 2005, have yielded substantial profits. John Mackey, former CEO of Whole Foods Market, is a board member of The Motley Fool.



Read more at Nasdaq: Why Alibaba Stock Is Skyrocketing Today