Here’s What Led Alibaba’s (BABA) Outperformance

Columbia Threadneedle Investments, an investment management company, released its “Columbia Threadneedle Global Technology Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter of 2025 was challenging for U.S. equities, marked by substantial policy shifts from the new U.S. administration, resulting in declines across all major U.S. indices.  In the quarter, the fund returned -12.26% compared to the S&P Global 1200 Information Technology Index-net’s -11.64%. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its first-quarter 2025 investor letter, Columbia Threadneedle Global Technology Growth Strategy highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was -9.08%, and its shares gained 56.18% of their value over the last 52 weeks. On June 10, 2025, Alibaba Group Holding Limited (NYSE:BABA) stock closed at $121.88 per share, with a market capitalization of $290.664 billion.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) was a high performing stock for the first quarter 2025. The company’s strong earnings results featured outperformance from its Cloud business, while advancements in AI reignited interest in the company. A more stable and accommodating regulatory environment from the Chinese government marking a shift in tone from recent years led to stock outperformance.”

Analyst Explains Why He Sold Alibaba Group (BABA) - ‘Gave This Trade 90 Days to Work’

An e-commerce platform displaying a wide range of products to customers online.

Alibaba Group Holding Limited (NYSE:BABA) is in 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 125 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the first quarter, which was 107 in the previous quarter. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared Artisan Select Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.