Aiplexity Investor Picks

Final Recommendation: Alibaba Group (BABA) Symbol: BABA | Current Price: $124.80 | P/E Ratio: 18.5 | 52-Week Range: $112.35–$145.60 --- #### Recent Performance - Surged 19% in Hong Kong due to triple-digit AI product revenue growth and 26% cloud sales increase (Q1 2024). - Beta of 0.158 (defensive vs. tech peers like NVDA and AMZN). #### Fundamentals - AI & Cloud Momentum: AI-related revenue growth outpaces peers, with cloud sales rising 26% YoY. - Valuation: P/E of 18.5 is attractive vs. Amazon (45.2) and NVIDIA (60.5). #### Analyst Consensus - 37/41 analysts recommend "Buy" or "Strong Buy" (7 strong buys, 30 buys). - 12-month average price target: $135.50 (16.6% upside from current price). #### Catalysts 1. AI/cloud demand: Positioned to benefit from global AI infrastructure spending and Fed rate cut expectations. 2. Earnings Recovery: Q1 miss due to R&D costs, but long-term growth trajectory remains intact. #### Risks - Earnings Volatility: Rising R&D expenses may pressure short-term margins. - Macro Sensitivity: Delayed Fed rate cuts could dampen risk-on sentiment. --- ### Action Plan - Entry: Long position at $124.80–$128.00. - Stop-Loss: $120 (to limit downside risk). - Target: $135.50 (analyst average) within 7 days. Basis for Decision: Strong analyst support, AI-driven revenue growth, and defensive valuation make BABA a high-conviction pick for the next week.