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Alibaba Group Holding Limited (NYSE:BABA) is one of the Best Cloud Computing Stocks to Buy According to Hedge Funds. On June 24, Daiwa reduced the price objective for the company's stock to $175 from the previous target of $200 and maintained a "Buy" rating on the shares. According to the firm, China's 2026 618 shopping festival was a negative surprise. The firm opines that there is weakness in the e-commerce consumption trend in China.

Furthermore, the growth of the broader sector is limited due to the difficult macro backdrop, tightening of regulations, scaled-back national trade-in program, etc. Therefore, the firm downgraded China's e-commerce sector.

In a separate update, Bloomberg reported that Alibaba Group Holding Limited (NYSE:BABA) sued the Department of Defense to be removed from the blacklist, which identifies the company as a supporter of the Chinese military. The company had appealed to the US justice system to avoid such a designation, which (according to the company) is arbitrary and unjustified.

Alibaba Group Holding Limited (NYSE:BABA) operates as a technology infrastructure and marketing solutions provider.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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