Why Shares of Alibaba Soared 27.4% In July
The Chinese giant is benefiting from its position as the leading cloud provider in the market.
Overview
Shares of Alibaba (NYSE: BABA) rose 27.4% in July, according to data from S&P Global Market Intelligence. The technology giant in China did not report earnings last month, but investors enjoyed a massive turnaround in its share price due to growing demand for its cloud computing services and the success of artificial intelligence (AI) models emerging from the country.
As of the close on August 6, Alibaba shares are down around 19% this year. Here's why it rose in July and whether it is a buy right now.
Details
Like its peer from the United States, Alibaba is known for its e-commerce platform, and has pivoted to the fast-growing cloud computing market with great success. It is the leading cloud provider by market share in the Asia Pacific region, with revenue growing 38% year-over-year to $6 billion last quarter.
Source
Originally published at www.fool.com.