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Alibaba Group Holding Limited (NYSE:BABA) is one of the Stocks with Potential to Explode in 2026. On June 12, Bloomberg reported that Alibaba Group Holding Limited (NYSE:BABA) is offering $1.5 billion to purchase Chinese grocery delivery firm, Pupu. Therefore, the company started a bidding war that’s part of a broader campaign to take the market share from the rival, Meituan.

Alibaba Group Holding Limited (NYSE:BABA)’s proposal came months after Meituan made an announcement about its acquisition of Dingdong Fresh Holding Ltd. for $717 million. The company’s offer highlights its focus on being a part of the battle between 3 giants of Chinese online commerce. Alibaba Group Holding Limited (NYSE:BABA), Meituan, and JD.com Inc. are ramping up their efforts to dominate the local commerce and fresh produce, with increased valuations demonstrating tough competition for the scarce retail assets.

Bloomberg, while quoting Charu Chanana (chief investment strategist at Saxo Markets), noted that while the consolidation tends to filter out the weaker players, the escalating bids appear to hint at a transition away from profitability and back towards the competition to gain share.

Alibaba Group Holding Limited (NYSE:BABA) operates as a technology infrastructure and marketing solutions provider.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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