U.S. markets close in 15 minutes
  • S&P 500

    3,322.59
    +51.56 (+1.58%)
     
  • Dow 30

    26,744.88
    +224.93 (+0.85%)
     
  • Nasdaq

    11,233.38
    +228.51 (+2.08%)
     
  • Russell 2000

    1,563.39
    +20.11 (+1.30%)
     
  • Crude Oil

    36.36
    -1.03 (-2.75%)
     
  • Gold

    1,869.80
    -9.40 (-0.50%)
     
  • Silver

    23.43
    +0.08 (+0.33%)
     
  • EUR/USD

    1.1678
    -0.0071 (-0.61%)
     
  • 10-Yr Bond

    0.8350
    +0.0540 (+6.91%)
     
  • GBP/USD

    1.2933
    -0.0054 (-0.42%)
     
  • USD/JPY

    104.6560
    +0.3550 (+0.34%)
     
  • BTC-USD

    13,529.81
    +374.45 (+2.85%)
     
  • CMC Crypto 200

    265.67
    +22.99 (+9.47%)
     
  • FTSE 100

    5,581.75
    -1.05 (-0.02%)
     
  • Nikkei 225

    23,331.94
    -86.57 (-0.37%)
     

Alibaba Group Holding (BABA) Has Risen 63% in Last One Year, Outperforms Market

Alex Smith
·4 mins read

If you are looking for the best ideas for your portfolio you may want to consider some of Del Principe O’Brien Financial Advisors top stock picks. Del Principe O’Brien Financial Advisors, an investment management firm, is bullish on Alibaba Group Holding Limited (NYSE:BABA) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Alibaba Group Holding Limited (NYSE:BABA) stock. Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology.

In August 2019, Del Principe O’Brien Financial Advisors had released its Q2 2019 investor letter. Alibaba Group Holding Limited (NYSE:BABA) stock has posted a return of 63.3% in the trailing one year period, outperforming the S&P 500 Index which returned 10.2% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Alibaba Group Holding Limited (NYSE:BABA) stock has risen by 27.8%.

In Q2 2019 investor letter, Del Principe O’Brien Financial Advisors said the fund posted a return of 7.1% in the second quarter of 2019, outperforming the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by Del Principe O’Brien Financial Advisors about Alibaba Group Holding Limited (NYSE:BABA) stock in the Q2 2019 investor letter.

"Alibaba is a Chinese company that cannot be ignored. Alibaba’s businesses are comprised of core commerce (Taobao, Tmall, 11main), cloud computing (Alibaba Cloud, Aliyun), digital media (Alimama), and entertainment (Sina Weibo, Youku Tudou), and innovation initiatives (China Smart Logistics). In addition, Ant Financial, an unconsolidated related party, provides payment and financial services to consumers and merchants on Alibaba’s platforms. A digital economy has developed around the platforms and businesses essentially making Alibaba the Amazon, Google, Ebay, PayPal, Twitter, and Etsy of China.

Alibaba is reported to have 721 million mobile monthly active users, which means on a monthly basis, Alibaba has more active users than the total estimated population of the United States, Canada, Mexico, United Kingdom, Germany, France, and Belgium in total. Alibaba Cloud is the fourth largest cloud service in the world, with 76% year over year cloud computing revenue growth. 40% of China’s Top 500 companies and nearly half of China’s listed companies are reported to use Alibaba Cloud.

In the commerce segment, Taobao.com (in Chinese, taobao means “search for treasure”) has grown to become China's largest shopping website and is ranked the ninth most popular website in the world by Alexa.com. Launched in 2003, Taobao lists hundreds of millions of products and services from millions of sellers. Taobao doesn't charge transaction fees, and the site is free to join for merchants, which has helped it gain an enormous user base in China. To further illustrate the size and success of Alibaba’s shopping platforms, consider that on Singles Day—the equivalent of Black Friday and Cyber Monday in the U.S.—Alibaba’s sales hit $1 billion in one minute and twenty-five seconds. In 24 hours, sales totaled $30.8 billion. Compare that to $24.9 billion, which was the total sales produced by the 870 Macy’s department stores in 2018. It bears repeating: Alibaba is a company to watch."

Alibaba Group Holding Ltd (NYSE:BABA), Logo, big sign, People taking photos, offering, ipo, group, stock
Alibaba Group Holding Ltd (NYSE:BABA), Logo, big sign, People taking photos, offering, ipo, group, stock

Christopher Penler / Shutterstock.com

In Q2 2020, the number of bullish hedge fund positions on Alibaba Group Holding Limited (NYSE:BABA) stock decreased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with Alibaba's growth potential. Our calculations showed that Alibaba Group Holding Limited (NYSE:BABA) is ranked #4 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.