Gaotu Techedu Inc. (GOTU) experienced a significant pre-market surge on Friday, soaring 5.06% as Chinese technology stocks rallied on the back of strong earnings reports and growing investor confidence in 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, sending its American Depository Receipts (ADRs) up 8.1% on Thursday. This positive sentiment spilled over to other Chinese tech stocks, including GOTU.
Moreover, Chinese ADRs and exchange-traded funds (ETFs) saw substantial gains in overnight trading, reflecting renewed optimism around Chinese equities, particularly in the technology space. Companies like Li Auto, XPeng, PDD Holdings, NIO, and Baidu all experienced significant upswings, fueling the broader rally in the sector.
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