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Alibaba Stock Surges on AI Investments and Market Rebound
Alibaba Stock Surges on AI Investments and Market Rebound
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BTCCSquare news:
Alibaba (BABA) has staged a remarkable recovery, with shares soaring 44% in the past month and 110% year-to-date. The resurgence follows a three-year slump during which Chinese tech stocks faced regulatory crackdowns and economic headwinds.
The rally stems from two key drivers: aggressive AI investments and a perceived valuation discount. Alibaba announced plans to deploy $52 billion over three years into cloud computing and AI infrastructure—a clear bid to compete in China's intensifying tech arms race.
While e-commerce platforms Taobao and Tmall remain Core businesses, cloud services now take center stage. June quarter results showed 10% organic revenue growth, modest by historical standards but sufficient to validate the AI pivot.
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