Alibaba Rallies 7.55% Amid Renewed Global Interest in Chinese Tech Stocks

On February 10, 2025, Alibaba saw a significant uptick in its stock price, rising by 7.55% on the U.S. stock market, marking a three-day gain streak of 12.13%. This comes in the context of a general adjustment and volatility in tech stocks worldwide, leading many analysts to suggest that renewed enthusiasm for Chinese tech stocks, particularly Alibaba, may be tied to a reassessment of China's market and innovative capabilities.

The upward movement wasn't merely fortuitous. The recent release of China's homegrown large-scale model, DeepSeek-R1, has quietly initiated a global re-evaluation of the value of Chinese tech stocks. The rapid advancements in deep learning and artificial intelligence technology have significantly bolstered market confidence in China's technological companies, highlighting their potential in innovation and application and ensuring their indispensable status among global tech giants.

In the meantime, Alibaba's business structure has demonstrated robust growth potential and resilience. Recent financial reports have shown continuous strength in the company’s performance across cloud computing, e-commerce, and digital media sectors. This robust performance underpins further stock price appreciation, particularly as Alibaba's e-commerce platforms increasingly gain consumer traction with rising transaction volumes and user engagement—providing additional confidence to investors and driving stock prices up.

On an industry level, with the gradual improvement of the international trade environment and the positive stance of various countries towards economic recovery, the global demand for tech stocks is on the rise. Alibaba, as a representative of Chinese stocks in the U.S. market, has garnered investor attention, becoming a hot topic for asset allocation. Unlike other tech giants like NVIDIA and Tesla, which have experienced fluctuations, Alibaba has exhibited resilience, demonstrating its appeal amid uncertain market conditions.

However, investors should be cautious while observing the rebound of Chinese stocks. Despite Alibaba's recent strong performance, its stock price has already rebounded to an important resistance level, and its sustainability remains to be seen. Market uncertainties encompass policy risks, fluctuating economic data, and other external factors. Although global capital is re-evaluating the value of Chinese stocks, it doesn't mean future challenges won't arise.

In conclusion, investors are advised to implement reasonable asset allocation and risk control while holding Chinese tech stocks. Setting stop-loss points can help mitigate significant losses due to market fluctuations. Additionally, keeping an eye on company financial reports and industry dynamics allows for timely adjustments to investment strategies. Being flexible and prudent in the face of upcoming market changes and possible policy shifts is vital.

Overall, Alibaba's performance not only reflects an improvement in its own business results but also underscores a market re-recognition of the value of Chinese stocks. While challenges lie ahead, capturing growth opportunities in tech stocks remains a blue ocean space worth the attention of investors.