Here's why Alibaba stock is surging

Core Viewpoint - Alibaba has diversified significantly beyond e-commerce, establishing itself as a major tech player in China, with its stock showing strong performance in 2023 [1][2]. Financial Performance - In Q2 earnings, Alibaba reported earnings per share of $2.93, surpassing consensus estimates of$2.67, while revenues were slightly above expectations [5]. - The stock saw a year-to-date return of 64.50%, with a notable increase from $124.80 to$139.48 within a short period [2]. AI and Cloud Computing - AI-related product revenue has experienced triple-digit growth for six consecutive quarters, while cloud revenue increased by 13% year-over-year [6]. - The CEO announced plans to invest more in AI and cloud computing over the next three years than in the previous decade, although specific amounts were not disclosed [7]. Strategic Partnerships and Investments - Alibaba has partnered with Apple to integrate its AI features into iPhones sold in China [8]. - The company is considering an investment in DeepSeek, which is seeking outside funding for the first time [8]. Stock Repurchase Program - Alibaba repurchased approximately $1.3 billion worth of its stock this quarter and has authorization to repurchase up to$20.7 billion more by March 2027 [9].