Alibaba (BABA) has outperformed U.S. tech stocks, with gains of 70% last year, surpassing Alphabet (GOOG) (GOOGL). The Chinese tech giant is up nearly 16% for the year, ahead of the average U.S. tech stock.

Positive macro developments and company-specific news have contributed to BABA’s rise. China’s investigation into competition among food delivery companies aims to curb cash burn. China’s emphasis on AI benefits Alibaba, a leading AI player in the country with global initiatives.

Sell-side analysts are cautious on Alibaba due to concerns over the core e-commerce business. Despite this, BABA has a “Strong Buy” consensus rating and a mean target price 16.2% higher than its closing price.

China’s economic slowdown poses a risk to Alibaba’s e-commerce business, but its cloud business and government intervention in food delivery offer support. Global expansion of AI initiatives could benefit Alibaba as countries diversify their imports.

Read more at Yahoo Finance: How to Play BABA Stock as Alibaba’s Growth Story Gets a Boost From the Chinese Government