$Alibaba(BABA.US) reviewed the reasons for the current stock price increase and the situation of counterparties. The stock price is determined by both buyers and sellers. A few days before the earnings report was released, investors who were bearish on the earnings report often exited the market early, which led to the stock price decline in the previous days.

On the day the earnings report was announced, the market was generally waiting for the results, so trading volume shrank. At the same time, after the Hong Kong stock market closed, the corresponding US stock pre-market trading rose slightly by 1 point. After the earnings report was announced at 6:30, some investors with weak conviction saw the net profit drop significantly and the stock price turn from a slight pre-market gain to a 3-point drop, so they chose to sell and exit. At this point, the short-selling pressure within these days has basically been fully released.

Coupled with the positive signals released by management during the conference call, and since short positions had largely exited earlier, long positions now dominate the current market structure, causing the stock price to start rising.