Alibaba Stock Jumps 12% on July 8 as Cloud Revenue Soars

Alibaba shares jumped 12% to €94.20 on July 8, marking their strongest single-day gain since September 2025. The rally was fueled by three catalysts: cloud division revenue surged 45% year-over-year, instant-commerce losses narrowed faster than expected, and a US federal judge temporarily blocked the Pentagon’s military company classification. The stock remains down 29% year-to-date despite the rebound.

Cloud computing drives the rally

Alibaba’s cloud division posted a 45% year-over-year revenue surge in the latest quarter, far exceeding analyst forecasts. The acceleration stems from surging demand for artificial intelligence products, which have become central to the company’s growth strategy. UBS analysts noted management has shifted toward protecting margins rather than chasing topline growth, suggesting investors may refocus on Alibaba’s valuable AI assets.

Instant-commerce losses narrow, profitability holds

Alibaba’s costly battle with rivals JD.com and Meituan over food delivery orders had weighed on profits. However, losses at Taobao Flash Purchase, its same-day delivery service, narrowed faster than projected. Core e-commerce profitability remained flat year-on-year, defying analyst expectations of a decline. The narrower losses eased investor concerns over margin pressure in the competitive instant-commerce segment.

Pentagon restriction temporarily blocked

A US federal judge on Sunday temporarily blocked the Pentagon’s classification of Alibaba as a Chinese military company, halting a lobbying ban in Washington. The judge described the restriction as a “political quarantine.” The underlying blacklist designation remains in effect, and a hearing is scheduled for the week of August 31. This legal reprieve removed a key overhang on sentiment.

Technical setup favored a bounce

Before the surge, Alibaba shares had closed at €85.90 on Tuesday with a relative strength index of 30.7, deep in oversold territory and well below the 200-day moving average. The court decision provided the trigger for a sharp mean-reversion bounce that traders had anticipated. Meyka grades BABA as B with a Hold recommendation, while the 12-month price forecast stands at $165.37, implying 51.7% upside from current levels.

Final Thoughts

Alibaba’s 12% jump reflects real operational progress in cloud and instant-commerce, plus legal relief. With Meyka grading the stock B and forecasting $165.37 within 12 months, the data suggests meaningful recovery potential from depressed valuations.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.