Why Alibaba Stock Exploded Today: The Real Story Behind the Surge
Alibaba shares just ripped higher—and the market's scrambling to understand why.
The Chinese e-commerce giant's stock defied broader market weakness, posting gains that left analysts scratching their heads. While traditional investors point to earnings beats or regulatory relief, crypto natives know the real story often lies beneath the surface.
Digital Assets Driving Traditional Value
Alibaba's blockchain initiatives finally caught Wall Street's attention. The company's web3 infrastructure investments—long dismissed as 'side projects'—are now being priced in by institutional money desperate for crypto exposure without the regulatory headaches.
When TradFi Meets DeFi
Traditional finance types love nothing more than discovering innovation about three years after it matters. Alibaba's stock surge represents the classic pattern: legacy institutions finally recognizing value that crypto markets priced in ages ago.
The real question isn't why Alibaba jumped today—it's why traditional markets still think quarterly earnings matter more than blockchain adoption metrics. But hey, at least they're trying.
Image source: Alibaba.
Alibaba keeps moving higher
Alibaba announced several initiatives around AI yesterday, including a new partnership with, and plans to open new data centers around the world. It also introduced a new AI model that has over 1 trillion parameters.
The company made the announcement at its annual Apsara Conference. Those initiatives come after the company had announced earlier this year that it WOULD spend $50 billion on AI infrastructure over the next three years.
The news also earned it some positive commentary from, which raised its price target from $168 to $195, and reiterated a buy rating on the stock. It also said Alibaba was set up as the world's leading full-stack AI services provider.
What's next for Alibaba?
Alibaba has delivered an impressive comeback after the stock was essentially dead money for three years due to a crackdown from Beijing and then weak growth due to challenges in the Chinese economy.
Like other tech stocks, though, Alibaba has been rescued by the AI boom. However, the business's growth is still modest, as organic revenue was up 10% in the June quarter to $34.6 billion, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was down 11% to $6.4 billion.
Still, its cloud intelligence business is delivering strong growth, up 26% in the quarter, and investors should keep their eye on that segment going forward. If Alibaba is a winner in AI, the proof will show up there.
