Alibaba's stock (BABA-W) surged 5.02% during intraday trading on Monday, as investors eagerly anticipate the company's fourth-quarter fiscal 2025 earnings report scheduled for Thursday. The significant uptick in share price reflects growing optimism surrounding Alibaba's performance and recent strategic developments.

The e-commerce giant has been riding a wave of positive momentum, with its stock already up over 45% year-to-date. This impressive rally can be attributed to several factors, including a robust rebound in core e-commerce sales and increasing investor confidence in Alibaba's artificial intelligence (AI) and cloud computing initiatives. Recently, the company secured a key AI deal with Apple, which will incorporate Alibaba's Qwen 2.5 model into iPhones sold in China, further cementing its position in the country's burgeoning AI market.

Wall Street analysts remain bullish on Alibaba's prospects, projecting earnings of $1.74 per share for Q4, marking a 24% year-over-year increase. Revenue is expected to reach $33.1 billion, up 7% from the previous year. The company's cloud segment has shown particular promise, with Barclays analyst Jiong Shao noting accelerated growth in the March quarter. As China shifts towards practical AI applications, Alibaba appears well-positioned to capitalize on this trend. With unanimous Buy ratings from analysts and an average price target implying nearly 33% upside potential, investor sentiment surrounding Alibaba remains strongly positive ahead of its earnings release.