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We recently compiled a list of the 10 Best Cloud Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Alibaba Group (NYSE:BABA) stands against the other cloud stocks.
Based on a report by MarketsandMarkets, the global cloud industry in 2025 is projected to grow by 15.1% to $1,256.8 billion. While 2024 was marked by high adoption by the BFSI sector, the year ahead should see applications being developed that meet the unique specifications of each industry. North America and Europe should capture the bulk of the market size but APAC is expected to register the fastest growth. The integration of AI with cloud platforms accompanied by new service models is another key development expected to shape this industry.
Cloud ETFs have generated generous returns of 2.74%, 28.54% and 11.00% for 1-month, 6-month and 1-year tenors. One would assume that the underlying stocks would continue to perform well, propelled by strong industrial tailwinds.
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For this article we picked 10 cloud stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An e-commerce platform displaying a wide range of products to customers online.
Alibaba Group (NYSE:BABA)
Number of Hedge Fund Investors: 115
Alibaba Group (NYSE:BABA) has forayed into the cloud computing space through Alibaba Cloud, a platform that offers services that include databases, networking and analytics to businesses, developers and government. It offers an open ecosystem that is constantly upgraded to offer an enhanced experience to its stakeholders.
BABA offers free training and co-marketing opportunities, making it a widely accepted cloud platform. The platform has found diverse applications that include supporting TNG eWallet in Malaysia, ZA digital bank in Hong Kong and the MiniMax AI platform in China. This cloud business has around 12,000 partners with a revenue of $4.1 billion in the quarter ending September, growing 7% y-o-y. The business supports more than 12,000 partners and is looking to make inroads in the South Eastern market with collaborations in the pipeline that include Telkom from Indonesia and Yell Group from Thailand. In a bid to incentivize the adoption of cloud products, BABA had earlier reduced the price of its Large Language Models by 85%.