Alibaba Group Holding Ltd. (NYSE:BABA) stock surged nearly 12% in premarket trading Wednesday as improving earnings expectations, artificial intelligence optimism, and several company developments boosted investor sentiment.
The rally followed reports that Alibaba provided analysts with a positive business update ahead of earnings. The company said losses in its instant-commerce business narrowed during the June quarter while overall profitability remained stable, Bloomberg reported Wednesday, citing Chinese media outlet Jiemian.
Jefferies Sees Stronger Execution
Alibaba shares have fallen more than 33% year to date as investors worried about China’s slowing economy and questioned how quickly the company could monetize its AI investments.
However, Jefferies Hong Kong analyst Thomas Chong believes much of that pessimism is already reflected in the stock price.
