Alibaba Stock: Recovery Signs Amid AI Push

After a challenging period, Chinese e-commerce giant Alibaba shows significant signs of recovery, with its stock recently stabilizing at $134.39 on the New York exchange. The company has begun rehiring following a wave of layoffs, suggesting a positive shift in its business trajectory. This current price reflects remarkable growth from its 52-week low of $68.43 in April 2024—representing nearly a 50% increase—while still offering potential upside with the 52-week high standing at $148.42, approximately 10.44% above current levels. The latest quarterly results reinforce this upward trend, with earnings per share jumping to $2.93 compared to just $0.79 in the same quarter last year. Revenue also grew by 8.20% to $38.97 billion. Analysts project earnings per share of 64.79 CNY for fiscal year 2025, indicating strong confidence in the company's long-term business development.

Strategic AI Investments Driving Growth

Alibaba's intensified efforts in artificial intelligence have contributed significantly to its stock performance, with a recent unveiling of a new AI model sparking a notable share price increase. The company's strategic partnership with a Chinese AI startup to develop the Qwen model, positioned as a competitor to DeepSeek, could provide crucial advantages in the competitive AI sector. Further strengthening its technological positioning, Alibaba has announced a collaboration with Apple to integrate AI functionality for iPhones in China by mid-2025. The upcoming quarterly results expected in May 2025 will likely provide deeper insights into the success of these AI initiatives and could prove decisive for the stock's future trajectory.

Ad

Fresh Alibaba information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld