Alibaba Group Holding (NYSE:BABA) stock saw a 3% rise on Friday, continuing its upward trend, which has positioned the company for its best monthly performance in almost two years. The company has gained over 29% since the beginning of September, marking its biggest one-month jump since December 2022, when it rose by 33.8%.
This rally started after Alibaba Group Holding (NYSE:BABA) reported strong second-quarter earnings on August 15 and gained further momentum with a 22% rise following key AI-related announcements and significant economic stimulus from the People’s Bank of China.
These measures, including interest rate cuts and reduced capital reserve requirements for banks, have boosted investor confidence.
Here’s Why Billionaire Investor David Tepper Boosts his Alibaba Stake
David Tepper, a well-known billionaire investor, has further increased enthusiasm around Alibaba Group Holding (NYSE:BABA). In a CNBC interview, Tepper mentioned that he expanded his holdings in the company, predicting China would ease its policies in response to the U.S. Federal Reserve’s actions.
He was surprised by the extent of China’s stimulus measures, which prompted him to increase his stake in Chinese stocks, including Alibaba Group Holding (NYSE:BABA).
“I thought that what the Fed did last week would lead to China easing, and I didn’t know that they were going to bring out the big guns like they did. We got a little bit longer, more Chinese stocks.”
David Tepper
Before this additional buying, Alibaba Group Holding (NYSE:BABA)was already the largest position in Tepper’s Appaloosa Management portfolio, accounting for more than 12% of the portfolio as of June 30.
Analysts Issue ‘Strong Buy’ as Alibaba Leads in E-Commerce and Cloud Innovation
Wall Street shares Tepper’s optimism, with analysts giving Alibaba Group Holding (NYSE:BABA) a “Strong Buy” rating, according to S&P Global Market Intelligence. Jefferies, a financial services firm, also rates the stock a “Buy” with a $116 price target.
Analyst Thomas Chong highlighted Alibaba Group Holding (NYSE:BABA)’s strong position in China’s consumption-driven economy and online shopping market, as well as its leadership in cloud computing, which plays a key role in the digitalization of various industries.
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