This tech stock may be like Meta Platforms in 2022.

Meta Platforms shares bought in late 2022 may have doubled or tripled in value. A solid stock bought when markets are negative might be a good long-term investment. Meta's recuperation was rapid.

Alibaba Group Holding (NYSE: BABA) may offer similar results. The IT stock has struggled in recent years due to investors' concerns over the Chinese government's participation in over a dozen Alibaba firms.

Despite its risks, Alibaba's size and importance in the Chinese internet and e-commerce marketplaces and its strong long-term growth prospects are impossible to ignore. Here's why this stock may be worth a shot today.

Recent concerns regarding Alibaba's business include its slow growth. Temu, owned by PDD Holdings, has increased competition in the Chinese e-commerce business by offering low-priced merchandise to retailers worldwide. Despite those obstacles, Alibaba's business survived.

According to the company's latest earnings report, Taobao and Tmall revenue climbed 2% in the fourth quarter of 2023. Alibaba's various businesses make this a good investment, even though e-commerce is its main industry. Alibaba's cloud intelligence group represents for over 10% of segmented revenue, and its Cainiao Smart Logistics Network accounts for little under 9% this quarter.

The slowing Chinese economy has hurt Alibaba, yet it still has growth potential. E-commerce penetration in China is already 30%, but Alibaba co-founder Joe Tsai expects it to reach 40% in five years. Alibaba's size and position in the Chinese e-commerce market make it well-positioned to gain from expansion.

Meta's stock fell so much in 2022 that its price-to-earnings (P/E) multiple was just above 8. Over 32 times its earnings, the stock trades today. With a P/E ratio under 14, Alibaba's stock is undervalued. Alibaba shares have fallen 15% in the past year, and depending on China-U.S. relations and the Chinese market, they could fall more.

Given these unknowns and Alibaba's geopolitical risk, investors are buying the company cheaply. But for a major tech player in international and Chinese e-commerce, this is valuable.

At its current price, Alibaba may be one of the best growth stocks to buy. The Chinese market is still developing, and while the Chinese government's influence on the company is concerning, it shouldn't scare long-term investors. Alibaba's stock could rise significantly. It traded around $200 in 2020 and could return to those levels in the future.

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