{"id":30699,"date":"2025-08-29T12:18:09","date_gmt":"2025-08-29T12:18:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/30699\/"},"modified":"2025-08-29T12:18:09","modified_gmt":"2025-08-29T12:18:09","slug":"alibaba-sees-historic-opportunities-as-ceo-points-to-ai-and-quick-commerce-wins","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/30699\/","title":{"rendered":"Alibaba Sees Historic Opportunities As CEO Points To AI And Quick Commerce Wins"},"content":{"rendered":"\n

Alibaba Group Holding<\/strong> (NYSE:BABA<\/a>) shares climbed on Friday following the release of its fiscal first-quarter results<\/a>, as the e-commerce giant co-founded by Jack Ma reported revenue that exceeded analyst expectations.<\/p>\n

The company posted quarterly revenue of $34.57 billion, up 2% year-over-year, surpassing the consensus estimate of $34.26 billion<\/a>.<\/p>\n

On a like-for-like basis, excluding revenue from the divested Sun Art and Intime businesses, Alibaba\u2019s revenue would have grown 10% year-over-year.<\/p>\n

Also Read: Alibaba Stock Slides Ahead of Earnings as AI Push, Cloud Growth, and China Risks Take Center Stage<\/a><\/strong><\/p>\n

Despite the top-line beat, adjusted earnings per American Depositary Share (ADS) came in at $2.06, falling short of the analyst consensus of $2.13.<\/p>\n

Adjusted net income declined 18% to $4.68 billion, while adjusted EBITA slipped 14% year-over-year to $5.42 billion, reflecting investments in Taobao Instant Commerce<\/strong> and enhancements to user experiences, acquisitions, and technology.<\/p>\n

Net income, however, surged 76% year-over-year, driven primarily by mark-to-market gains from equity investments and the disposal of Trendyol\u2019s local consumer services business.<\/p>\n

Alibaba\u2019s China E-commerce Group drove core growth, with revenue rising 10% to $19.55 billion. The company invested heavily in quick commerce initiatives, including the launch of Taobao Instant Commerce, which expanded on-demand delivery and spurred a 25% increase in monthly active users.<\/p>\n

Strong results from the 6.18 Shopping Festival, higher take rates, and double-digit growth in 88VIP memberships also contributed to the segment\u2019s performance.<\/p>\n

International operations fared well, with the Alibaba International Digital Commerce Group reporting a 19% increase in revenue to $4.85 billion. Growth was fueled by cross-border expansion, narrowed losses, and improved unit economics at AliExpress and Trendyol through logistics optimization and investment efficiency.<\/p>\n

The Cloud Intelligence Group posted a 26% revenue increase to $4.66 billion, driven by rising demand for AI products, public cloud services, and generative AI infrastructure. AI-related product revenue continued its streak of triple-digit growth for the eighth consecutive quarter.<\/p>\n

View more earnings on BABA<\/a><\/p>\n

Alibaba\u2019s cash position remained robust, with $81.76 billion in cash and equivalents as of June 30, 2025. The company generated an operating cash flow of $2.89 billion, down 39%, and free cash flow was an outflow of $2.63 billion, primarily reflecting cloud infrastructure spending and investments in Taobao Instant Commerce.<\/p>\n

Story Continues <\/p>\n

Headcount slightly declined to 123,711 employees, from 124,320 at the end of March 2025.<\/p>\n

Alibaba CEO Eddie Wu<\/strong> said the company drove strong growth by focusing on consumption and AI + Cloud, hitting milestones in quick commerce and boosting engagement across its platforms.<\/p>\n

He noted that soaring AI demand accelerated Cloud Intelligence Group revenue and made AI products a significant share of revenue from external customers.<\/p>\n

\u201cLooking ahead, we remain committed to investing in our two strategic pillars of consumption and AI + Cloud to capture historic opportunities and drive long-term growth,\u201d Wu added.<\/p>\n

CFO Toby Xu <\/strong>said Alibaba\u2019s core strength supports continued investment in AI and quick commerce while improving efficiency, pointing out that AIDC nearly reached breakeven this quarter.<\/p>\n

Alibaba developed a new AI inference chip to strengthen China\u2019s self-sufficiency push and reduce reliance on Nvidia <\/strong>(NASDAQ:NVDA<\/a>), the Wall Street Journal reported<\/a> on Friday.<\/p>\n

Unlike its previous processors built for narrow applications, the chip, now in testing, is designed to handle a broader range of AI inference tasks. It is compatible with Nvidia\u2019s platform, making it easier for engineers to repurpose existing software.<\/p>\n

The chip, manufactured in China rather than by Taiwan Semiconductor Manufacturing<\/strong> (NYSE:TSM<\/a>), reflects Alibaba\u2019s $53 billion investment plan in AI and cloud services over the next three years.<\/p>\n

Price Action:\u00a0<\/strong>BABA shares are trading higher by\u00a04.21%\u00a0to\u00a0$124.60 premarket at\u00a0last check Friday.<\/p>\n

Read Next:<\/strong><\/p>\n

Image via Shutterstock<\/p>\n

Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights<\/strong><\/a> that can set you ahead in today’s competitive market.<\/p>\n

Get the latest stock analysis from Benzinga?<\/p>\n

This article Alibaba Sees Historic Opportunities As CEO Points To AI And Quick Commerce Wins<\/a> originally appeared on Benzinga.com<\/a><\/p>\n

\u00a9 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"Alibaba Group Holding (NYSE:BABA) shares climbed on Friday following the release of its fiscal first-quarter results, as the…\n","protected":false},"author":2,"featured_media":30700,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,24333,289,290,19026,838,14141,18,24334,19,17,24336,9988,17787,24335,82],"class_list":{"0":"post-30699","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-alibaba-group","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-cloud-services","13":"tag-commerce","14":"tag-consensus-estimate","15":"tag-eire","16":"tag-equity-investments","17":"tag-ie","18":"tag-ireland","19":"tag-product-revenue","20":"tag-quarterly-revenue","21":"tag-quick-commerce","22":"tag-revenue-increase","23":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=30699"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/30699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/30700"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=30699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=30699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=30699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}