Overview

• June-quarter revenue reached 247.7 billion yuan, coming in below some analyst estimates, while net income rose to 43.1 billion yuan.
• Management said the profit surge primarily reflected mark-to-market gains on equity stakes and proceeds from disposing of Trendyol’s local consumer services unit.
• Cloud Intelligence Group posted 33.4 billion yuan in sales, up 26% year over year, with executives citing robust demand for AI products and services.
• Alibaba is pressing ahead with a roughly $53 billion, three-year buildout of AI and cloud infrastructure and is investing in quick commerce via Taobao Instant Commerce to lift engagement and users.
• Reports say Alibaba is testing an in-house AI inference chip compatible with Nvidia’s platform, shares rose after the results, and the company noted weaker operating and free cash flow despite a large cash reserve.