Alibaba Stock: Can ZEROSEARCH Do What 1,521% Revenue Growth Couldn't?

Alibaba Group Holding Co Ltd BABAF BABA has grown revenue by a staggering 1,521% over the past decade, but its stock price has barely flinched – up just 20% in the same span, Barchart reported. Investors, it seems, have demanded more than fundamentals.

Now, Alibaba is hoping that a little AI magic can finally get the market’s attention.

The company just rolled out ZEROSEARCH, a framework it claims can slash AI training costs by as much as 90%. Instead of relying on expensive API calls during training, Alibaba's large language models simulate search behavior internally. If the math holds, that could dramatically cut the cost and time required to build and scale AI models – an edge in a hyper-competitive space.

But while ZEROSEARCH makes headlines, the real drama may be unfolding on the chart.

Chart created using Benzinga Pro

Read Also: Alibaba Misses Revenue, But AI Cloud Has Silver Lining

Alibaba stock, at $125.16, trades above its 20-day Simple Moving Average (SMA) of $118.03 and its 50-day SMA of $99.17. Meanwhile, the 50-day is closing in fast on the 200-day SMA of $99.58. That sets the stage for a Golden Cross– a bullish technical pattern where the 50-day SMA overtakes the 200-day.

A golden cross doesn't guarantee liftoff but is a powerful sentiment shift. It suggests long-term buying pressure is returning, and many institutional traders treat it as a green light for accumulation.

The Moving Average Convergence Divergence (MACD) is at 7.46, signaling upward momentum. The MACD line (blue) has recently dropped below its signal line (red) which could spell caution. The Relative Strength Index (RSI) reads 57.93 – comfortably neutral, meaning the stock isn't overbought and still has room to run.

For a stock that's spent years grinding sideways despite eye-popping growth, ZEROSEARCH may finally be arriving at the right time. With a golden cross on deck, Alibaba bulls could get the technical validation they've been waiting for.

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