Zhihu Inc. (NYSE: ZH), the Chinese question-and-answer platform, saw its stock soar 5.92% in a 24-hour period, reflecting growing investor confidence ahead of the company's upcoming earnings announcement and recent positive developments.

The surge comes as Zhihu prepares to hold a board meeting on August 27 to consider and approve its interim results. Investors are likely optimistic following the company's strong performance in the first quarter of 2025, where it achieved non-GAAP profitability for the first time since its listing. The Q1 results showed a significant improvement in gross profit margin, rising from 56.6% to 61.8% year-over-year, and a substantial 93.9% reduction in net loss.

Adding to the positive sentiment, globally renowned investment institution Fidelity International has significantly increased its holdings in Zhihu's Hong Kong-listed shares (ZHIHU-W) over the past six months. This move, coupled with upgraded ratings and raised target prices from major analysts, underscores growing institutional confidence in Zhihu's long-term prospects. The company's successful integration of artificial intelligence into its ecosystem and refined operational strategy appear to be paying off, attracting both investor interest and user engagement on the platform.