Alibaba ( (BABA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Alibaba has experienced a significant resurgence, with its stock price reaching levels not seen since 2021. This upward momentum is driven by robust growth in its AI and cloud divisions, alongside a revitalized e-commerce sector. The company’s cloud intelligence revenue surged by 26% year-over-year, fueled by strong demand for AI products, which have seen triple-digit growth for eight consecutive quarters. Alibaba’s strategic partnership with Nvidia and plans to expand its data centers globally further bolster its growth prospects.
In addition to its technological advancements, Alibaba’s core e-commerce business is thriving, with a notable increase in customer-management revenue and a surge in active users on its Taobao app. The company’s 88VIP membership tier and successful mid-year festival have contributed to this growth. Despite the competitive landscape, Alibaba’s valuation remains attractive, trading at around 25 times forward earnings. Analysts remain bullish, with several raising their price targets, reflecting confidence in Alibaba’s continued growth potential.