Best Tech Stocks to Buy: Alibaba (BABA)
The internet in China remains a strong growth opportunity. By 2022, the country’s middle class is expected to hit 600 million, compared to just 320 million people in the U.S. The e-commerce market is expected to explode, too, with spending forecast to shoot from $470 billion this year to nearly $840 billion by 2021.
The best way for American investors to capitalize is via Alibaba Group Holding Ltd (NYSE:BABA). The company has roughly 454 million active buyers on its retail marketplaces and 507 million monthly active users (MAUs) on its mobile platforms.
However, Alibaba is more than just e-commerce. The company has invested heavily in leveraging its digital platforms into other growth areas like entertainment, cloud computing and payments. BABA also has made smart investments in things such as social platform operators Weibo Corp (ADR) (NASDAQ:WB) and Momo Inc (ADR) (NASDAQ:MOMO).
Expect the traction to continue for some time. Alibaba recently reported a nice increase to its guidance for fiscal 2018, with revenues expected to increase by 45%-49%, clobbering still-robust expectations for 36% growth.