Through his Soros Fund Management, billionaire George Soros has a reputation for his aggressive investment strategies that have earned him significant returns.
Indeed, his portfolio contains several unique, diversified names whose acquisition can be tied to identifying macroeconomic trends, capitalizing on market inefficiencies, and taking significant positions in undervalued assets.
One notable name in his portfolio is Chinese e-commerce giant Alibaba (NYSE: BABA), in which Soros purchased a stake in the second half of 2024. For investors looking to turn their investments into millions, BABA might offer an opportunity.
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Notably, over the past year, Alibaba’s stock has experienced fluctuating performance, marked by volatility in the Chinese economy and regulatory scrutiny from the Asian economic giant.
As of the last trading session, BABA was valued at $85.12, ending the day up 3.2%. BABA’s share price has surged over 24% in the past year.
Alibaba stock’s growth potential
As things stand, BABA presents an ideal investment opportunity, considering its price can be viewed as cheap, and the company is likely to benefit from optimism around Chinese economic policies showing signs of supporting business growth.
At the same time, the company has strong backing on the financial front. For instance, although the stock has faced challenges in maintaining growth alongside other global leaders, such as Amazon (NASDAQ: AMZN), the firm has seen its revenue grow from $12.3 billion in 2015 to $130.3 billion in 2024.
Currently, Alibaba is forecasted to maintain steady growth, with Q4 2024 revenue estimated at $38.05 billion—up 7.06% year over year. For Q1 2025, analysts predict $32.55 billion, a 7.47% increase from the previous year.
Full-year 2025 revenue is expected to reach $136.43 billion (up 6.16%), with 2026 projected at $147.64 billion (up 8.08%).
Besides e-commerce, Alibaba offers strong growth potential in cloud computing and artificial intelligence (AI). Innovations such as new transaction fees and AI marketing tools are driving recovery for its flagship online marketplace platforms, Tmall and Taobao.
At the same time, the technology giant’s cloud segment has seen improved profitability, with earnings up 89% in Q3 2024. With a forward P/E under 9 and $43.6 billion in net cash, Alibaba can be considered an undervalued opportunity for growth-focused investors.
Meanwhile, a consensus of 11 Wall Street analysts at TipRanks has given BABA a “Strong Buy” rating. The average projected price of $121 indicates a 42% upside over the next 12 months, and the analysts have a high forecast of about $144.
Some of the experts, including Jefferies analyst Thomas Chong, raised Alibaba’s stock target to $144 from $143 on January 9, maintaining a ‘Buy’ rating.
His optimism stems from an expected strong December quarter performance supported by strategic clarity. Chong highlighted the success of the “Double-11” shopping event as a key factor driving year-over-year GMV growth for Taobao and Tmall (TTG).
On the same date, Citi analyst Alicia Yap maintained a Buy rating on BABA with a price target of $138. The estimate was guided by what she termed as the expected strong performance in Alibaba’s projected merchandise volume, ahead of previous conservative assumptions.
BABA stock investment verdict
Earning over $1 million from BABA stock in 2025 may be an uphill task given the significant initial investment required. However, the stock’s current valuation makes it an attractive opportunity for those looking to enter at a relatively low price.
With its strong fundamentals, Alibaba presents a solid opportunity, and investors can leverage strategies such as dollar-cost averaging or call options to maximize their potential returns.
However, caution is needed as there are potential headwinds for the Chinese tech giant, particularly the impact of possible tariffs and general policy shifts from the incoming Donald Trump administration.
Featured image via Shutterstock
