Hot or Not, Stock Market Edition: 10/02/2025
Happy Thursday! Here’s what’s hot and what’s not today:
- Hot: Broadcom (AVGO) got 10 Strong Buy ratings last month; Meta Platforms (META) could be a great dip buy this week
- Not: Unpacking Alibaba’s (BABA) mixed messages; Shopify (SHOP) gets a downgrade from our quant ratings system
P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.
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🥶 NOT: It’s hard to know what to make of Alibaba (BABA). Currently trading in the $180s, the stock has come down a lot since its $300+ highs in 2020 — but could things be turning around? It’s gained 10% in the past week — is it on the precipice of a big run thanks to growing cloud revenue from AI, as Jeffries analyst Thomas Chong believes? Or are the pros overestimating BABA’s cloud opportunity, as outlets like Seeking Alpha suggest? Rather than speculate, let’s look at what the cold, hard data tells us. Looking at the Zen Rating, BABA earns a C (Hold) rating, with the Component Grades that shape the overall rating revealing several red flags. Despite one “good” grade — a B for Momentum — the stock has a pretty dismal report card. It earns an F in Growth, indicating its growth prospects are dismal, and Ds for both Sentiment and Safety. Considering this, plus the persistent macro risks and skepticism plaguing Chinese tech, we’re watching with caution rather than jumping on board with the recent rally.
🔥 HOT: Meta Platforms (META) is flexing its AI muscles. Its recent $14 billion deal with CoreWeave has sent a wave of excitement across the tech sector about next-gen AI infrastructure. Funny enough, CoreWeave (CRWV), which we currently rate a D (Sell), saw some noticeable price movement, while META’s price dropped following the news. But when you move past the hype, we believe META has the makings of a stronger investment. With a Zen Rating of B, it’s in the 91st percentile of stocks we track. The underlying Component Grades are likewise strong — it earns an A for both Financials and Sentiment, signaling robust fundamentals and acknowledging positive investor buzz. Right now, it appears META is delivering the goods — and with analysts forecasting as much as 47% potential upside in the next year and its strong ranking in our quant ratings system, it’s definitely one to watch.
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