Alibaba Stock Surges to 52-Week High on AI Confidence
Alibaba's stock has surged to a new 52-week high of $192.67, boosted by confidence from star investor Cathie Wood and analysts' positive outlook on the company's AI advancements.
Cathie Wood, known for her forward-thinking investments, has recently bought into Alibaba's stock through her ARK Invest Fund. Her purchases, totalling around $16.3 million across two ETFs, mark her first Alibaba investment since 2021. This move signals her confidence in Alibaba's growth strategy.
Alibaba's upcoming quarterly report in mid-November is set to showcase the company's AI advancements. CEO Daniel Zhang plans to further increase the current budget of $53 billion. The company's AI revenues in the cloud segment have been growing at triple-digit rates for eight consecutive quarters, demonstrating its strong AI performance.
Alibaba has also formed a strategic partnership with Nvidia. Together, they aim to integrate advanced AI tools into Alibaba's cloud platform and develop humanoid robotics. This collaboration is expected to enhance Alibaba's AI capabilities and expand its offerings.
In a show of confidence, Alibaba has initiated a $19.1 billion buyback program, with around 2 million American Depositary Shares already repurchased for $241 million. Analysts have responded positively, upgrading Alibaba's stock to 'Buy' and maintaining a 'Strong Buy' consensus.
Alibaba's stock price has reached a new high, driven by Cathie Wood's investment, strong AI performance, and analysts' positive outlook. The company's increased AI investment budget and strategic partnership with Nvidia position Alibaba well for future growth. Investors await the upcoming quarterly report to further assess Alibaba's AI progress.
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