Gaotu Techedu Inc. (GOTU) experienced a significant surge on Friday, soaring 5.64% during the intraday trading session. This rally was part of a broader uptrend in Chinese technology stocks, fueled by strong earnings reports and growing optimism around the sector.
A key driver behind GOTU's rally was the impressive performance of e-commerce giant Alibaba, which reported better-than-expected sales figures and positive results for its cloud business. Alibaba's American Depository Receipts (ADRs) jumped 8.1% on Thursday, and this positive sentiment spilled over to other Chinese tech stocks, including GOTU.
Additionally, Chinese ADRs and exchange-traded funds (ETFs) saw substantial gains in overnight trading, reflecting renewed investor confidence in Chinese equities, particularly in the technology space. Companies like Li Auto, XPeng, PDD Holdings, NIO, and Baidu all experienced significant upswings, further fueling the broader rally in the sector.
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