Alibaba's AI Business Boosts Revenue Growth, Should You Buy or Sell?

Alibaba Group is reporting significant growth in its artificial intelligence business, leading to accelerating revenue growth. However, investors may want to consider other stocks before investing in Alibaba Group. According to a Motley Fool analysis, the company was not included in the list of the 10 best stocks to buy now, which could produce monster returns in the coming years.

Title: Alibaba's AI Growth: A Closer Look and Alternatives

Alibaba Group Holding Ltd. (NYSE: BABA) has been making waves in the tech industry with its significant growth in the artificial intelligence (AI) sector. The company's AI business has been a key driver of accelerating revenue growth, leading to an upward trend in its stock price [1]. Alibaba's AI capabilities have positioned it as a leading AI enabler and adopter in the Asia Pacific region, with its cloud services, AliCloud, and e-commerce applications playing pivotal roles [1].

However, investors might want to consider other stocks before investing in Alibaba Group. According to a Motley Fool analysis, Alibaba was not included in the list of the 10 best stocks to buy now, which could produce monster returns in the coming years [2]. This suggests that while Alibaba's AI growth is impressive, there may be other opportunities in the market that could offer similar or better returns.

One such stock is Pool Corp. (POOL), a company that sells pool supplies and maintenance items. Warren Buffett and his team recently bought the stock, indicating confidence in its long-term growth prospects [2]. Despite a recent decline due to the construction boom fizzling out, Pool's business is inherently tilted toward growth, with maintenance items representing around two-thirds of its revenue [2]. Every new pool built increases the number of potential customers for Pool's business, making it a solid long-term investment.

Another option is Hershey (HSY), an iconic consumer staples stock that focuses on confections and snacks. Although it has been facing challenges due to the rise in cocoa prices, Hershey is controlling what it can by increasing prices, cutting costs, and improving business efficiency [2]. The company's long-term growth prospects remain strong, as chocolate is a popular product that consumers are unlikely to stop eating, regardless of price increases.

Investors should carefully examine stocks that are unloved but have inherently strong businesses with long-term growth opportunities. Alibaba's AI growth is impressive, but there are other stocks that could offer similar or better returns in the coming years. It's essential to stay informed and make investment decisions based on thorough research and analysis.

References:
[1] https://www.ainvest.com/news/alibaba-ai-business-boosts-revenue-growth-buy-sell-2507/
[2] https://www.fool.com/investing/2025/07/19/2-growth-stocks-to-invest-1000-in-right-now/