Why Alibaba Stock Is Pumping Hard Today - 2025 Surge Explained
Alibaba shares rocket upward as traders pile into the Chinese tech giant's unexpected rally.
Breaking Through Resistance
The stock smashed through key technical levels that had analysts scrambling to update their price targets. Volume spiked 300% above average as institutional money flooded back into Asian markets.
Regulatory Thaw Fuels Momentum
Beijing's latest policy shift on tech oversight sent shockwaves through global exchanges. Instead of the usual regulatory hammer, officials extended an olive branch - and investors pounced.
Retail Traders Chase The Green
Social media lit up with momentum chatter as day traders piled into the action. Because nothing gets amateur investors excited like double-digit percentage moves before lunch.
This rally's got legs - but remember, on Wall Street, what pumps today often dumps tomorrow.
A 31% boost
Well before market open that day,'s (BCS 1.88%) Jiong Shao lifted his Alibaba fair value assessment to $190 per ADR. That was significantly higher than his preceding price target of $145. Shao maintained his overweight (read: buy) recommendation on the Chinese tech giant.
Image source: Getty Images.
According to reports, the basis for Shao's bullish MOVE is Alibaba's mighty cloud computing unit. The prognosticator pointed out that this business alone saw revenue growth of 26% year over year in the company's recently reported second quarter. He firmly believes that figure can go higher, and management will be able to maintain its profit margins.
At first glance, that quarter was a disappointing one for Alibaba, as the company missed the consensus analyst estimates for both revenue and profitability. However, there was much for investors to like, such as the performance of that cloud unit and encouraging growth in e-commerce.
A bunch of price target bumps and an upgrade
Even after that Q2 double miss, analysts are generally bullish on Alibaba's future. Like Shao, a clutch of them raised their price targets on the veteran company after earnings with one analyst (Arete's Zixiao Yang) upgrading their recommendation to buy from the previous neutral, at a price target of $152 per ADR.
