Alibaba’s $4B AI Bet Drives BABA Stock Up 8%: Why Investors are Buying the 84% Profit Plunge

Alibaba Group (BABA) stunned markets on Wednesday, reporting that its strategic pivot into Artificial Intelligence is paying off faster than even Wall Street anticipated. Despite an 84% drop in core profitability, the result of a massive reinvestment cycle, shares surged over 8% as investors embraced the company’s AI-first future.