James Brumley, The Motley Fool
7 min read
In This Article:
-
Alibaba operates in a regional economic silo that benefits the company.
-
The personal mobility space is changing in a way that favors Uber Technologies, but the biggest change is still ahead.
-
Cisco is still the king of the networking market, but smaller and more specialized player Arista Networks has found a way to be incredibly competitive.
High Yield Savings Offers
Powered by Money.com - Yahoo may earn commission from the links above.Are you looking for some new growth stocks now that many of the market's usual favorites -- like Apple and Alphabet -- aren't as compelling as they once were? Don't panic. Great stocks are out there. You just have to dig a bit deeper to find the best ones.
With that as the backdrop, here's a rundown of three brilliant growth stock prospects worth stepping into and sticking with for the long haul. Each one has a business that's built to last indefinitely.
There's the Alibaba Group (NYSE: BABA) you know. That's the Alibaba that owns and operates China's popular e-commerce platforms Tmall and Taobao, and its foreign-facing AliExpress that helps Chinese manufacturers sell to overseas customers. Within its home country, the company enjoys a commanding 40% of the online shopping market, according to wealth management outfit DBS Treasures.
Then there's the Alibaba you don't know. This company also offers cloud computing services, operates a digital entertainment arm, and manages its own logistics/delivery business. It's even working on its own artificial intelligence models meant for consumer and corporate use. Remember the Qwen2.5 model unveiled in January that reportedly performed better than DeepSeek (which had only been revealed a few days earlier as a threat to platforms like OpenAI's ChatGPT)? Alibaba is the developer of Qwen.
All of these business lines are going to be marketable in the near and distant future, even if not explosively so. Alibaba's first-quarter revenue improved to the tune of 7% year over year, more or less matching its long-term top-line growth rate that's likely to remain in place for the indefinite future.
But the tariff standoff between China and the United States that's creating a ripple effect outside of both countries? That's just it. Alibaba isn't particularly vulnerable.
Don't misread the message. Anything that slows China's manufacturing exports ultimately threatens the nation's internal consumerism.
It's not a dire threat, though. More than 80% of this company's revenue is generated domestically. And it's largely understood that Chinese companies are expected to use goods and services offered by other Chinese companies whenever there's a choice. Ditto for their foreign business partners. For instance, although Apple prefers OpenAI's ChatGPT everywhere else, in China, its newest AI-capable iPhones sold in that market will utilize Alibaba's Qwen model.