🔥 Alibaba rockets +8% 🚀 on AI hype—flash in the pan or comeback signal?

$Alibaba(BABA)$   surged after Nvidia’s AI update reignited interest in Chinese tech names, with retail traders piling into the bounce. Social feeds lit up as AI bulls rotated back into large-cap laggards. But here’s the real question: Is Alibaba finally waking up from its slump—or is this just another false start? 👀

📦 What’s Behind the Move

The immediate spark came from Nvidia’s fresh AI announcements and a surge in enthusiasm for enterprise adoption across Asia. Chinese tech stocks rallied in sympathy, but Alibaba stood out with its +8% jump. Part of the optimism stems from Alibaba’s steady push into AI—via its Tongyi Qianwen model, deepening cloud-AI integration, and even rumored advancements in logistics automation. Traders see parallels with $NVIDIA(NVDA)$   and $Microsoft(MSFT)$  -style AI narratives, though $BABA is still far from proving monetisation. Compared to peers like $JD and $PDD, Alibaba has been a notable underperformer in the past 12 months—but also potentially one of the most discounted in terms of valuation vs tech potential. This week's rally could be traders re-rating its cloud-AI optionality, especially with Beijing signaling support for strategic tech.

📉 The Bigger Picture

Let’s not ignore the elephant in the room: Alibaba’s delivery and logistics arms have been weighing heavily on margins. The food delivery segment continues to burn cash amid a fierce subsidy war with $MEITUAN(MPNGF)$   and $JD. Despite cloud growth and signs of stabilisation in core commerce, these unprofitable verticals have capped investor enthusiasm. Some argue that any AI upside is being eaten away by weak unit economics in Cainiao or Ele.me. Others believe this is the classic turnaround setup—cut losses, reinvest in tech, and allow valuation to re-rate. Still, the stock’s recent surge may be less about fundamentals and more about short-covering and sector-wide AI rotation.

📊 Investor Angle

Would you re-enter $BABA at these levels? The stock trades at a steep discount to U.S. cloud peers and offers a strong free cash flow yield. But geopolitical risks and persistent China macro overhangs keep institutions cautious. The bull case: AI creates a long-term moat, earnings bottom out, and the company reclaims leadership in Asia tech. The bear case: too many distractions, too little profitability, and political tailwinds remain fickle. Risk-reward looks asymmetric, but only if you're betting long-term.

💬 💡 Bullish or bearish on $BABA going into Q3?

📈 Can AI give Alibaba its mojo back? Let’s hear your take 👇

📊 Drop your bull/bear thesis below — is Alibaba back, or just bouncing?

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