Alibaba Group (NYSE: BABA) shares skyrocketed to a three-year high on Friday, soaring up to 11% to HK$133.90 in Hong Kong trading. The e-commerce powerhouse reached its strongest level since early 2022, powering a more than 2% rise in the Hang Seng Index as its top performer. The jump came after Alibaba posted stellar December quarter earnings that topped forecasts, igniting a rally across major Chinese tech stocks.
Alibaba posted better-than-expected revenue in the December quarter, driven by growing demand for its AI-driven Alibaba Cloud services. The company announced plans to boost investments in its core e-commerce business and artificial intelligence, signaling confidence in future growth. Adding to the buzz, Alibaba confirmed a partnership with Apple (NASDAQ: AAPL) to power AI features in iPhones sold in China.
The stock caught extra attention after an overnight Wall Street Journal report revealed that GameStop (NYSE: GME) CEO and billionaire investor Ryan Cohen had quietly amassed a $1 billion stake in Alibaba over recent months.
Alibaba Sparks Broader China Tech Rally
Gains in Alibaba Group (NYSE: BABA) sparked a broader rally in Chinese tech stocks, as investors cheered the company’s cloud unit success and its leadership in AI development.
Baidu (NASDAQ: BIDU) climbed 2%, Tencent Holdings jumped 3.4%, and JD.com (NASDAQ: JD) gained 2.6% on Friday. The gains come amid a hot streak for China’s biggest tech stocks over the past month. Much of this momentum traces back to the release of the DeepSeek AI model, which has fueled optimism that Chinese firms remain competitive in the global AI race. Alibaba has played a starring role in this narrative.
In late January, the company unveiled a new AI model of its own, aiming to capitalize on DeepSeek’s popularity. It also offers support for DeepSeek through its cloud platform, strengthening its position as a leader in China’s AI development efforts.
