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2mo ago

Alibaba Shares Surge on Strong Earnings and AI Investment Plans

The Chinese tech giant's profit soared 239% as it announced aggressive investments in AI and cloud infrastructure over the next three years.

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Chinese CEO Jack Ma of Alibaba listens to Chinese President Xi Jinping at a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs in Seattle, Washington September 23, 2015.
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Overview

  • Alibaba reported fiscal Q3 2024 revenue of $38.38 billion, an 8% increase year-over-year, exceeding analyst expectations.
  • Net income jumped 239% to $6.72 billion, driven by operational growth and gains from equity investments.
  • The company plans to invest more in AI and cloud computing infrastructure over the next three years than it has in the past decade.
  • Alibaba's cloud business grew 13% year-over-year, with AI-related product revenue achieving triple-digit growth for the sixth consecutive quarter.
  • Investor confidence was bolstered by Jack Ma's appearance at a meeting with Chinese President Xi Jinping and the company's partnership with Apple on AI features for iPhones in China.