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We recently compiled a list of the 20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against the other high growth mega cap stocks.
Exactly 5 years ago, the world struggled to deal with a black swan event: the COVID-19 pandemic. There was so much uncertainty that people didn’t even know if they’d be alive in the next few weeks, let alone figure out where the market was heading. Anyone who invested in the S&P 5 years ago would have gained 83%. If you had bought at the exact bottom, you’d have gained twice that amount.
What the above proves is that the present isn’t necessarily an indicator of what the future holds. All companies that had their workflows disrupted have recovered, some more than others. Some companies have strengthened their supply chains. Others have improved their work-from-home capabilities. Industries like airlines and restaurants have modified their business models to cater to the new dynamics.
These companies have been able to deal with the changing dynamics because of their financial strength and innovation. A company’s past performance and its finances give a good idea of whether it will be able to survive bad times. That’s why when we look at the best mega-cap stocks to hold for the next 5 years, we look at how well they have grown in the last 5 years.
To come up with our list of top 20 mega-cap stocks to hold for the next 5 years, we considered stocks with a market cap of at least $200 billion and a 5-year sales growth rate of at least 10%.
An e-commerce platform displaying a wide range of products to customers online.
Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group Holding Limited (NYSE:BABA) is a marketing reach and technology infrastructure provider to brands, businesses, merchants, and retailers. It operates in Local Consumer Services, China commerce, Digital Media and Entertainment, International Commerce, and other segments. The company has grown its revenue by 19.89% over the last 5 years’.
Chinese tech stocks are enjoying a great run at the moment and Alibaba Group Holding Limited (NYSE:BABA) is already up 68% this month. The massive run is coming on the back of optimism surrounding China’s AI technologies, which continue to impress the world even if some are skeptical about them.
If investors are looking for a long-term AI investment, Alibaba Group Holding Limited (NYSE:BABA) ticks a lot of boxes. The company’s CEO has gone as far as saying that artificial general intelligence (AGI), is the primary objective of the firm’s AI ventures.