Alibaba: A Value Investor's Haven Amidst Market Fear

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Finance News

Alibaba,Stock Market,Value Investing

Barron's 2025 top stocks list features Alibaba, a Chinese company facing controversy. Despite investor unease, analysts and institutions are increasing their holdings, suggesting a potential opportunity for value investors. The article highlights China's economic outlook, bond market divergence, and Alibaba's dividend yield as factors driving this trend.

It’s the end of the 2024 trading year. Now that investor attention – and capital – is headed to 2025, a few resources might be useful for figuring out the best ideas and trends to invest in in the coming months. One of these resources is Barron’s top stocks list for 2025, released every end of the year and followed by many for their accuracy on average at picking good companies to hold over the next 12 months.

offers a dividend yield of up to 2.5%, which is above the Chinese ten-year bond’s current yield of 1.7%. In any other market, when stocks offer a higher yield than the country’s ten-year bond, there is typically a buying spree. What are these buyers seeing in the company that most of Main Street just seems to be missing out on? Well, that’s where retail investors can start to take analyst views and sentiment into account. Today’s price target on Alibaba stock, the Wall Street consensus, stands at $114.1 a share, calling for up to 35.3% upside from today’s prices.

As bullish as these targets are, they still don’t reflect the big picture. Analysts thought Alibaba stock was worth up to $246 a share in 2021, and judging by the company’s financials, that valuation should have never gone away in the first place.

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