Alibaba (BABA) Soars 6.62% on AI Strategy

On April 9, 2025, Alibaba's stock (BABA) surged by 6.62% in pre-market trading, reflecting a strong bullish sentiment among investors.

Alibaba's recent strategic moves in the AI sector have garnered significant attention. The company has fully embraced the Model Context Protocol (MCP), an open-source protocol designed to standardize interactions between AI models and external tools. This initiative allows for seamless integration and enhanced functionality, positioning Alibaba as a leader in AI technology. The MCP protocol supports a wide range of applications, from life information and browsing to content generation, making it a versatile tool for various AI-driven projects.

Analysts from major financial institutions have also weighed in on Alibaba's prospects. McGregor reiterated their "buy" rating for Alibaba, citing expectations of stable fourth-quarter earnings and improvements in core business segments. The firm anticipates that advancements in advertising technology will drive sustained growth in monetization rates. Similarly, Citigroup maintained its "buy" rating, highlighting the potential for continued growth in customer management revenue (CMR) and cloud business income. Morgan Stanley, while keeping its "overweight" rating, emphasized Alibaba's position as a key beneficiary of AI advancements, predicting robust growth in both CMR and cloud revenue.