Why is Alibaba stock climbing today?
Alibaba's stock climbed 2.6% to HK$123 on Monday following reports of the company selling its gaming subsidiary, Lingxi Games, to Asian private equity firm Trustar Capital. The deal, reportedly valued at $1.5 billion, is part of Alibaba's strategy to streamline its operations and concentrate on artificial intelligence. This move comes after Alibaba's formal open-sourcing of its Qwen3.8 model series, which has surpassed 3 billion cumulative global downloads, signaling a strong commitment to AI.
Analysts, with an average 12-month price target of HK$180.95 and a consensus Strong Buy rating, have long advocated for this path. The broader Hong Kong market also contributed to the positive sentiment, with the Hang Seng Index rising by up to 1.5%.
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