Alibaba Group Holding Ltd. (09988.HK) saw its stock price surge by 5.09% during intraday trading, reflecting investor optimism fueled by the company's strong performance in China's cloud market and strategic adjustments in its e-commerce operations.

According to recent Canalys research, Alibaba Cloud maintained its leadership position in China's cloud infrastructure services market with a 33% market share in the first quarter of 2025. The company achieved a 15% year-on-year growth, with AI-related workloads delivering seven consecutive quarters of triple-digit expansion. This solidifies artificial intelligence as the core growth engine for Alibaba's cloud division, positioning the company at the forefront of China's booming cloud and AI sectors.

Adding to the positive sentiment, reports emerged that Alibaba founder Jack Ma has intervened in the strategy of Taobao Flash Sales. Ma reportedly directed the division to "anchor at 80 million orders," prioritizing capability upgrades and foundational strengthening over immediate expansion. This move is seen as a prudent step to ensure sustainable growth in the highly competitive e-commerce space. Additionally, Alibaba plans to launch "Super Saturdays" promotional events every Saturday over the next 100 days, potentially boosting sales and market share.

The stock's upward movement aligns with the broader trend observed in Chinese tech stocks trading in the US, where the Nasdaq Golden Dragon China Index (HXC) notched a 0.73% gain. Alibaba's ADR also performed well in the US market, advancing 1.41% to $108.22 on Monday, outperforming some of its competitors.

As Alibaba continues to strengthen its position in both cloud computing and e-commerce, investors appear optimistic about the company's future prospects, driving the stock to new heights in today's trading session.