Alibaba's total market capitalization in Hong Kong has returned to HKD 3 trillion, and Alibaba is undergoing a rebirth

On September 17th, Alibaba's Hong Kong stock rose by 5.28%, closing at HKD 161.6, reaching a nearly four-year high, with a total market value returning to HKD 3 trillion. Compared to the beginning of the year, Alibaba's stock price has nearly doubled. Several international investment banks, including JP Morgan and Goldman Sachs, have recently raised their target prices, indicating a shift in the market's valuation logic for Alibaba. The main drivers of the renewed confidence are two factors: the rapid growth of AI and cloud business, as well as the stabilization and rebound of traditional e-commerce. In the second quarter of 2025, Alibaba's cloud business revenue grew by 26% year-on-year, and revenue from AI-related products has maintained triple-digit growth for eight consecutive quarters, entering a positive cycle of high investment and high growth. Meanwhile, the e-commerce fundamentals have stabilized and rebounded, with Taobao's flash purchase business driving customer management revenue to grow by 10% year-on-year, exceeding market expectations, and contributing to a 25% year-on-year increase in monthly active users of the Taobao app