Why Alibaba's Stock Is Soaring Monday

Key Takeaways

Alibaba's ( BABA ) U.S.-traded shares soared Monday after Chinese authorities said they planned to expand stimulus spending next year, and co-founder Jack Ma highlighted the promise of artificial intelligence (AI) . Alibaba affiliate Ant Group also announced a new CEO.

China Pledges ‘More Proactive’ Stimulus in 2025

Shares of Alibaba and other Chinese companies listed in the U.S. surged Monday following a report from state-run news agency Xinhua that the Chinese government will be "more proactive" with stimulus spending in 2025.

Jack Ma Touts AI at Ant Group Event

Billionaire Jack Ma , the co-founder of Alibaba and its affiliate company Ant Group, also highlighted the promise of AI technology at an event Sunday, in a rare public appearance.

"From today's perspective, the great changes brought by the AI ​​era in the next 20 years will exceed everyone's imagination," Ma said, according to a report from Reuters that cited Chinese media outlet 36kr .

Alibaba has implemented what it called an "AI first strategy," designed to make core computing resources more accessible to customers of all sizes. In April, the company's cloud division cut prices for its international customers in an attempt to grow its reach.

Ant Group Names New CEO

The event saw Alibaba affiliate Ant Group name finance chief Cyril Han its new CEO, effective March 1, replacing Eric Jing.

As of Sept. 30, Alibaba held a 33% stake in Ant Group, which operates the Chinese payment platform Alipay.

Alibaba shares were up close to 9% intraday Monday and have gained over 20% since the start of the year.

Read the original article on Investopedia