Alibaba Stock Jumps 10% on Strong Earnings, AI Growth

Alibaba Group's shares surged nearly 15% to a three-year high following a strong quarterly earnings report that exceeded market expectations. The company reported a net income of $6.72 billion and revenue of $39 billion, driven by impressive growth in its cloud computing and international e-commerce segments, which saw year-over-year increases of 13% and 32%, respectively. This robust performance signals a potential turnaround for Alibaba, which has faced challenges from regulatory scrutiny and competition in recent years. Analysts note that Alibaba's focus on AI-driven services is a major contributor to its growth, with AI-related product revenue achieving triple-digit growth for six consecutive quarters. The stock remains undervalued compared to its U.S. counterparts, suggesting further upside as the company expands its global reach. Investor sentiment is buoyed by Alibaba's strategic positioning in the digital economy and its ability to thrive amid global market uncertainties.