--- title: "The Best Growth Stock to Buy With $1,000 Right Now" description: "The article discusses Alibaba (BABA) as a promising growth stock for investors with $1,000 to invest. Despite concerns over overvaluation and competition, Alibaba's diverse business segments, includin" type: "news" locale: "en" url: "https://longbridge.com/en/news/254759480.md" published_at: "2025-08-27T08:29:47.000Z" --- # The Best Growth Stock to Buy With $1,000 Right Now > The article discusses Alibaba (BABA) as a promising growth stock for investors with $1,000 to invest. Despite concerns over overvaluation and competition, Alibaba's diverse business segments, including e-commerce, cloud computing, and artificial intelligence, present significant growth potential. Analysts predict an average annual revenue growth of 8% over the next three years, supported by China's expanding e-commerce market. The stock has nearly doubled since last year's low but remains below its 2020 peak, making it an attractive option for risk-tolerant investors looking to capitalize on future growth opportunities. Are you struggling to find some new picks you can feel good about buying right now? If so, you're not alone. A bunch of stocks feel overbought, and seem overvalued -- particularly against the uncertain economic backdrop. You can't simply abandon the market, though; the bigger risk remains not being invested and missing out on further upside. You'll simply want to change your tack by looking for new ideas that are a bit off the beaten path. And one of the best off-the-beaten-path prospects right now is arguably **Alibaba** (BABA -0.14%). Image source: Getty Images. ## More than mere e-commerce There's the Alibaba you (probably) know. That's the parent to China's powerhouse e-commerce platforms Tmall and Taobao, which collectively account for nearly half of its home country's online shopping market. Then there's the Alibaba you may *not* know. That's its cloud computing arm, a logistics business, and a digital entertainment operation, just to name a few. These aren't massive moneymakers; e-commerce still makes up more than 40% of the company's total top line. But they're enterprises with a great deal of growth potential. And, like **Amazon** here in the United States, most of these businesses support other Alibaba profit centers. Perhaps the aspect of Alibaba that's the most exciting, however, is the one that may be the least appreciated. That's its artificial intelligence (AI) arm. Remember the super-efficient AI-powered conversational chat app called DeepSeek-V3 that became a presumed threat to existing platforms like ChatGPT and Google's Gemini when it was introduced in January of this year? Then, do you remember the similarly efficient artificial intelligence platform, called Qwen 2.5, unveiled just a few days later? That's Alibaba's invention (although it's progressed to Qwen 3.0 in the meantime). It's not just user-friendly Qwen in the company's AI quiver, however. Alibaba is using homegrown artificial intelligence to build tools for its e-commerce partners, like language translation, speeding up its customs processing, making its warehouses and logistics networks more efficient, and more. As is the case everywhere else in the world, Alibaba is now finding more ways to put its AI tech to work. The thing is, none of this potential -- and likely upside -- is being reflected in this stock's price. ## The bullish case OK, it's not being *completely ignored*. Shares of this ADR have nearly doubled in price since last year's low of around $68. The stock's still suspiciously well below its pandemic-inspired 2020 peak of more than $300 apiece, though. Investors remain cautious of competition, while the echoes of 2020's regulatory crackdown on most of China's technology companies are still ringing. The market may also just be unsure of exactly how or when Alibaba will be able to monetize all of the artificial intelligence developmental work it's been doing. It's slowly but surely becoming clearer, though. In addition to all of the applications named above, for instance, the company is now working with **Apple** to make Qwen 3 compatible with AI-capable iPhones sold in China. Just a few days ago, Alibaba unveiled Qoder, which is software that makes it easy for developers to custom-build their own artificial intelligence-powered customer-service agents based on Alibaba's AI technology. Alibaba is even working on its own artificial intelligence processor chips, even though it's got the option to use processing tech made by U.S. companies like **Intel** or **Nvidia**. That permission has always been tenuous at best; Beijing's preference for a completely homegrown alternative could eventually become a requirement. Alibaba is just preparing for every potential possibility. As it should. **Morgan Stanley** believes China's current collective investments in AI could begin breaking even by 2028 en route to a 52% return on this investment by 2030, when the country's entire AI industry could be worth $140 billion. Alibaba is well positioned to win a share of this growth. In the meantime, the company has a profitable e-commerce operation to keep it in the black. This business is growing, too. Mordor Intelligence says that China's e-commerce market is likely to grow at an average annualized pace of more than 10% between now and 2030. Given all of this, analysts are looking for this profitable company's top line to grow at an average annual rate of 8% per year for the next three years. Then there's a less quantifiable reason to take a shot on Alibaba sooner than later if you've got an extra $1,000 you're ready to put to work. That is, you'd be sidestepping much of the geopolitical and economic drama that seems to be rattling the U.S. market more and more these days. ## Not for everyone, but certainly for volatility-tolerant story-stock junkies Is Alibaba right for everyone? Probably not. The volatility this ticker has dished out since taking a turn for the better a little over a year ago is still more than many investors can tolerate, even if the gains since then have been worth it. This is also a trade that will require a little more regular monitoring than the average holding might since the strength of the bullish argument largely depends on what the company is able to do with its AI tech (and, to a lesser degree, general cloud computing). Its e-commerce business could also be somewhat unpredictable, in light of a couple of recently disappointing retail sales reports from Beijing. Just don't lose your bigger-picture/longer-term perspective. While July's retail sales in China fell short of the expected 4.6% improvement, they were still up 3.7% year over year on a 5.7% improvement in industrial output. It's also worth adding that China's GDP is still expected to grow by 4.8% this year, according to the International Monetary Fund, versus expected growth of only 1.9% for the United States' economy. If nothing else, a stake in Alibaba would plug you into a company that's in the heart of an economy with more growth upside than you'll likely find here. Just be aware that Alibaba will be releasing its quarterly results before the market opens on Friday, Aug. 29. There will likely be post-earnings fireworks -- probably bullish ones, but possibly bearish ones. As such, it wouldn't be crazy to wait until after then to dive in, just on the off chance something changes (including the stock's price). If you're truly looking five years down the road, though, what happens on Friday isn't going to matter much either way. This company's story is just getting really good again. ### Related Stocks - [BABA.US - Alibaba](https://longbridge.com/en/quote/BABA.US.md) - [09988.HK - BABA-W](https://longbridge.com/en/quote/09988.HK.md) - [KBAB.US - KraneShares 2x Long BABA Daily ETF](https://longbridge.com/en/quote/KBAB.US.md) - [BABO.US - YieldMax BABA Option Income Strategy ETF](https://longbridge.com/en/quote/BABO.US.md) - [BABX.US - BABA 2x Long Daily ETF - GraniteShares](https://longbridge.com/en/quote/BABX.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 阿里傳大膽加碼淘寶閃購 3 年沒虧損負擔 力爭市佔率超越美團 | 阿里巴巴（9988）計劃在淘寶閃購上加大投入，力爭在 2026 年市佔率超越美團。管理層鼓勵團隊在未來三年內不承受虧損，重點發展即時零售，特別是高客單價訂單。儘管股價一度下跌，阿里仍將繼續探索到店業務，並計劃在春節後全面推進其戰略。 | [Link](https://longbridge.com/en/news/275711000.md) | | 消息人士表示，美國預計將阿里巴巴及其他公司列入涉嫌協助中國軍方的公司名單 | 特朗普政府即將把阿里巴巴和其他公司加入一份聲稱支持中國軍方的公司名單。此舉預計將在週五公佈，是五角大樓 1260H 名單的一部分。該名單雖然不施加正式制裁，但向供應商和政府機構傳達了美國軍方對這些公司的立場。一些公司對其被列入名單表示異議 | [Link](https://longbridge.com/en/news/275904637.md) | | 測評超谷歌英偉達！阿里發佈 RynnBrain 機器人大模型：讓機器人具備 “思考大腦” | 阿里巴巴於 2 月 10 日推出了機器人 AI 基礎模型 RynnBrain，旨在賦予機器人感知、決策與執行能力。該模型在多項評測中超越谷歌和英偉達的主流模型，具備時空記憶與推理能力，能夠在多任務中保持工作連續性。RynnBrain 的開源 | [Link](https://longbridge.com/en/news/275420195.md) | | 中國大模型 “春節檔” 打響！等待消費級 AI 出 “爆款” | 2025 年 DeepSeek 的春節突襲戰術已成為行業教科書。2026 年所有人都學會了這一招。字節、阿里、智譜及 DeepSeek“春節檔” 密集發佈旗艦模型，競爭焦點從單純的模型性能轉向 “效率” 與 “智能體” 落地。分析指，若 D | [Link](https://longbridge.com/en/news/275684474.md) | | 阿里這次出招具身智能，劍指深度環境理解力 | 引入了時空記憶和物理世界推理兩項核心能力。 | [Link](https://longbridge.com/en/news/275425215.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.