Is It Finally Safe to Buy Alibaba Stock?

Core Viewpoint - Alibaba's stock has experienced a significant recovery, rising 44% in the last month and doubling year-to-date, driven by its investments in AI and cloud computing, despite modest overall growth in revenue [2][4]. Group 1: Stock Performance - Alibaba's stock was previously underperforming, trading below $100 for nearly three years, but has now surged due to a combination of factors [1][2]. - The stock has increased by 110% year-to-date, indicating a strong recovery and investor interest [2]. Group 2: Growth Drivers - The company's strategic focus on artificial intelligence and cloud computing has been pivotal in its stock rally, with a notable investment plan of at least $52 billion over the next three years [4][5]. - Alibaba reported a 26% growth in its cloud intelligence group and triple-digit growth in AI-related product revenue for eight consecutive quarters, showcasing the effectiveness of its AI strategy [6]. Group 3: Recent Developments - CEO Eddie Wu's announcement of increased AI spending and a partnership with Nvidia has further fueled investor confidence [7]. - The launch of the new large language model, Qwen3-Max, with over 1 trillion parameters, highlights Alibaba's commitment to advancing its AI capabilities [8].