【9988】Alibaba’s share price surges more than 12% in a “revenge rally”; reports say Taobao Flash Purchase reduces losses faster than expected

Alibaba (09988) shares surged more than 12% in a rebound, hitting a high of 107.7 yuan. On the news front, reports say Alibaba’s FY2027 Q1 earnings preview indicates that overall e-commerce business (China e-commerce + AIDC) profits are steady with a recovery in growth. Taobao Flash Purchase reduced losses faster than market expectations; the gap in unit economic performance (UE) with its competitors narrowed, and market share remained stable during the subsidy reduction process. The focus of Taobao Flash Purchase has shifted to high average order value food and non-food orders, and UE is expected to continue improving next.

Catherine Lim, an industry research analyst at Bloomberg, said Alibaba’s share price strength may reflect broader optimistic sentiment across China’s tech sector. She noted that Alibaba’s partnership with Lazada and Meta, and its pursuit of more resilient, profit-oriented growth overseas, suggests promising long-term profitability prospects.