BAHAMAS — Alibaba shares hit a record high Thursday, driven up by optimism that it will eventually boost earnings and boost revenue from the launch of its cloud-based e-commerce platform.
Shares rose $4.83 to $50.69 an exchange-traded mark, while Microsoft shares rose $2.15 to $33.29.
The stock’s gains are a sharp reversal from its record closing low of $33 on Aug. 7.
The price had fallen more than 20% in a day earlier.
The rally was fueled by expectations that Alibaba would launch a $25 billion initial public offering of Alibaba shares, a move that could help drive revenue and earnings in the near future.
But Alibaba shares have been losing ground in recent months, losing about $30 billion in market capitalization since Alibaba was first publicly listed in 2014.
In fact, Alibaba is on track to lose about $10 billion this year, according to research firm FactSet.
The Nasdaq composite stock market is up just 1% this year.