Alibaba stock up 68% in 2025, trending positive

Alibaba has seen a significant rise in its stock price in 2025, with an increase of 68% so far this year. This growth marks a high point for the company not seen since 2021. Investors are taking notice again, thanks to improvements in its financial performance and its role in the growing artificial intelligence (AI) field. The company struggled with competition from newer e-commerce platforms like Pinduoduo and Douyin in previous years. However, Alibaba has made key changes, shifting its focus from merchants to consumers. This includes lowering prices and using AI to enhance user experience. The early results have been promising, with a 9% rise in revenue from customer management in late 2024. On an international level, Alibaba's e-commerce business has also seen a 32% revenue increase. This expansion helps the company reduce reliance on the Chinese market and opens new growth opportunities globally. Alibaba is well positioned to benefit from the booming AI market, which is expected to grow significantly in the coming years. The company has invested heavily in its cloud computing capabilities and has developed its own AI models. With plans to invest over $50 billion in infrastructure and research, Alibaba aims to strengthen its presence in AI. However, there are risks involved. Alibaba must navigate regulatory and political challenges in China, which could impact international growth. Investor sentiment can also shift quickly, which may lead to stock volatility. Overall, Alibaba's recent performance suggests it is on a positive trajectory, making it an attractive option for investors willing to take on the associated risks. Its valuation remains appealing compared to competitors, offering further incentive to consider purchasing Alibaba stock.