Cohen's sizable stake in Alibaba is a bullish bet on China's economic growth in the long run, The Wall Street Journal said.

KEY TAKEAWAYS U.S.-listed shares of Alibaba Group are rising in premarket trading Friday after GameStop CEO Ryan Cohen reportedly raised his stake in the Chinese tech giant and as investors cheered the company’s "aggressive" plans to boost AI spending.

The e-commerce stock has started 2025 on a tear, with investors betting that China's faltering economy will rebound.

GameStop CEO Ryan Cohen has expanded his stake in Alibaba to roughly 7 million shares worth about $1 billion. The investment signals a bullish outlook on China’s economic growth. Alibaba’s shares surged over 8% on Thursday after reporting a sharp profit increase in the December quarter,