Alibaba’s shares rose 10% on Friday, reaching their highest level in over three years, after the company reported its third-quarter revenue exceeded analysts’ expectations. The Chinese e-commerce giant’s cloud business outperformed forecasts, and its AI strategy showed promising signs of growth.
For the quarter ended December 31, Alibaba’s revenue grew 5%, with its international e-commerce division experiencing a 32% increase in sales. The company’s cloud intelligence unit saw revenue rise by 13%. Investors are optimistic about Alibaba’s prospects, particularly given its emergence as an AI leader in China.
The company plans to invest more in e-commerce and AI over the next three years, according to CEO Eddie Wu. This strategy is expected to drive growth and solidify Alibaba’s position in the competitive Chinese market.
Additionally, a reported increase in billionaire investor Ryan Cohen’s stake in Alibaba has bolstered investor confidence. The news comes as other players in China’s AI space are making significant strides. Alibaba’s partnership with Apple to power iPhones sold in China with its AI solutions further demonstrates its commitment to innovation and growth.
With its strong Q3 performance, Alibaba has kicked off 2025 on a positive note, drawing investors into its AI-driven growth strategy.
Source: https://www.reuters.com/business/retail-consumer/alibaba-beats-revenue-estimates-third-quarter-2025-02-20