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Alibaba Tops Revenue Forecasts as Cloud Sales Surge on AI Push

Management cites heavy investment to scale AI-driven cloud services as the driver of the quarter.

Overview

  • Total revenue rose 5% to 247.8 billion yuan for the quarter ended September 30, beating estimates of 242.65 billion yuan.
  • Cloud Intelligence revenue climbed 34% to 39.82 billion yuan with AI-related products delivering a ninth straight quarter of triple-digit growth.
  • Alibaba deployed roughly 120 billion yuan on AI and cloud infrastructure over the past four quarters, and cloud EBITDA increased 35% to 3.6 billion yuan.
  • Adjusted earnings per American depositary receipt were 4.36 yuan, missing Bloomberg consensus of 6.34 yuan.
  • Alibaba’s Qwen chatbot app launched on November 18 and surpassed 10 million downloads in its first week, and U.S.-listed shares rose about 4% premarket then 3.9% after the open.