Alibaba Shares Surge on Earnings Beat, Ma's Re-emergence

Alibaba Group Holding Ltd. shares surged on Monday, as investors bet on a comeback for the e-commerce giant and its founder, Jack Ma. The stock climbed as much as 10% in Hong Kong, its biggest intraday gain since March 2020, after the company reported better-than-expected earnings last week.

The rally comes as Alibaba's empire appears to be regaining its footing after a tumultuous year. The company faced a record $2.8 billion fine from Chinese regulators in April, following an antitrust probe, and Ma, the company's co-founder and former chairman, has kept a low profile since late last year.

However, Alibaba's earnings report last week showed that the company's core commerce business remains strong. Revenue from its China commerce retail segment rose 35% year-on-year in the fiscal fourth quarter, while adjusted earnings per share beat analysts' estimates.

Investors are also optimistic about Alibaba's prospects in the cloud computing and local consumer services sectors. The company's cloud computing business reported revenue growth of 58% year-on-year in the fiscal fourth quarter, while its local consumer services segment saw revenue rise 19%.

Meanwhile, Ma has been making efforts to rebuild his image and re-engage with the public. He attended a dinner with medical workers in Hefei, Anhui Province, on June 6, 2020, and has been more active on social media in recent months. His Weibo account, which had been dormant for several months, has seen an increase in activity, with Ma posting about topics such as education and entrepreneurship.

Analysts believe that Alibaba's strong earnings report and Ma's re-emergence could signal a turnaround for the company. "Alibaba's earnings report was a positive surprise, and the company's fundamentals remain strong," said a Hong Kong-based analyst who asked not to be named. "Ma's re-engagement with the public is also a positive sign, as it shows that he is committed to rebuilding the company's image and moving forward."

However, some challenges remain for Alibaba. The company is facing increased competition from rivals such as JD.com and Pinduoduo, and regulators are continuing to scrutinize the tech industry. Additionally, the COVID-19 pandemic has led to uncertainty in