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With gains of 70% last year, Alibaba (BABA) outperformed U.S. tech stocks by a wide margin. Incidentally, the returns were higher than Alphabet (GOOG) (GOOGL), which was the best-performing “Magnificent 7” stock in 2025. The Chinese tech giant has continued its good run in 2026 and is already up nearly 16% for the year, which is well ahead of what the average U.S. tech stock has delivered.
In my previous article, I had noted that Alibaba’s risk-reward for 2026 looked favorable despite the rally. With the stock now building on the gains, let’s explore whether there’s more to the BABA growth story this year.