Alibaba shares jump over 10% on strong cloud growth and earnings outlook

Alibaba Group's shares surged more than 10% on the Hong Kong market on Wednesday, marking the stock's biggest single‑day gain in about ten months. The rally was led by a 45% jump in cloud‑computing revenue and a positive earnings preview for fiscal Q1 2027, which signaled a rebound in the e‑commerce business and reduced losses in instant‑commerce.

Investors also welcomed a U.S. court decision that temporarily blocked the Pentagon from designating Alibaba as a Chinese military company, easing regulatory concerns. Analyst optimism was tempered by several banks lowering price targets, though they kept buy recommendations, citing higher AI investment costs. The surge lifted other Chinese technology stocks, including Baidu, JD.com, Xiaomi and Lenovo, while Alibaba remains down roughly 33% for the year.

The company also announced integration of its AI product lines under the QoderWork platform, combining the “Wukong” and “MuleRun” capabilities, underscoring its push into enterprise AI applications.