Stock surged on the belief that government intervention in the food delivery sector will curb intense price competition, which is expected to improve the company's long-term profitability.

Viewed as a potential 'catch-up trade' within the Chinese tech sector. A move to the $45 area is considered possible if it can break its current resistance level.

Michael Burry bought a position in the Chinese retailer, indicating a value-oriented play where he perceives the stock as cheap.