{"id":32009,"date":"2025-08-30T02:06:12","date_gmt":"2025-08-30T02:06:12","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/32009\/"},"modified":"2025-08-30T02:06:12","modified_gmt":"2025-08-30T02:06:12","slug":"why-alibaba-rallied-today","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/32009\/","title":{"rendered":"Why Alibaba Rallied Today"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Alibaba reported strong revenue growth and accelerating cloud growth.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Artificial intelligence (AI) is center stage now, and AI-related revenues grew triple digits.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">However, profits actually decreased amid the brutally competitive Chinese e-commerce industry.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ca0a8488-16e0-4d1b-98c8-acb8a7de825a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than Alibaba Group \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than Alibaba Group \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\">Shares of Chinese e-commerce and tech giant <strong>Alibaba<\/strong> (NYSE: BABA) rallied on Friday, appreciating 13.1% as of 2:28 p.m. ET.<\/p>\n<p class=\"yf-1090901\">Alibaba reported earnings today, which appeared to encourage investors. While profits actually went down, an acceleration of cloud and artificial intelligence (AI) revenue appear to be the most important data points.<\/p>\n<p class=\"yf-1090901\">In addition, the Wall Street Journal reported the Chinese tech giant has developed a new AI chip, which could take on importance since China recently issued an order discouraging the use of <strong>Nvidia<\/strong>&#8216;s (NASDAQ: NVDA) H20.<\/p>\n<p class=\"yf-1090901\">In its fiscal first quarter, Alibaba grew revenue just 2%, but revenue grew 10% outside of divestitures, which included the Sun Art and Intime businesses. Within that 10%, Alibaba&#8217;s domestic e-commerce revenue grew 10%, international e-commerce grew 19%, and the cloud intelligence group accelerated to a 26% growth rate.<\/p>\n<p class=\"yf-1090901\">On the negative side, profits actually decreased, with adjusted <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/gaap-vs-non-gaap\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cfbac96e-3a9c-40c2-9c1d-c32580974209\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:non-GAAP;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">non-GAAP<\/a> (generally accepted accounting principles) earnings before interest, taxes, depreciation, and amortization (<a href=\"https:\/\/www.fool.com\/terms\/e\/ebitda\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cfbac96e-3a9c-40c2-9c1d-c32580974209\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:EBITDA;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">EBITDA<\/a>) falling 11%. The company put big investments behind its Taobao Instant Commerce initiative, which aims to deliver packages within an hour, as well as associated marketing efforts. An overwhelming majority of Alibaba&#8217;s business is still in a brutally competitive Chinese e-commerce industry, and at least in this quarter, we saw that competition in the form of lower margins.<\/p>\n<p class=\"yf-1090901\">Yet it appears the cloud revenue acceleration was exciting enough, especially as management noted that AI-related cloud revenue grew at a triple-digit rate for the eighth consecutive quarter.<\/p>\n<p class=\"yf-1090901\">AI enthusiasm may have also been sparked by today&#8217;s Wall Street Journal article highlighting Alibaba&#8217;s new chipmaking efforts. Alibaba&#8217;s prior efforts in this area had focused on application-specific chips, but the WSJ reported Alibaba&#8217;s newest chip can achieve a broader range of AI inference tasks. Also embedded in the WSJ article is the fact that. unlike Huawei&#8217;s AI chip, Alibaba&#8217;s new chip will be software-compatible with Nvidia&#8217;s, so developers won&#8217;t have to reprogram their entire stack.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Semiconductor amid U.S. and Chinese flags. \" loading=\"eager\" height=\"640\" width=\"960\" class=\"yf-1gfnohs loader\"\/> Image source: Getty Images.         <\/p>\n<p class=\"yf-1090901\">Alibaba has rebounded strongly off its lows of late 2022, more than doubling since then, but also sits about 63% below its all-time highs from late 2020. The stock trades for just 18 times earnings, which still seems cheap for a tech giant with an AI growth story.<\/p>\n<p> Story continues <\/p>\n<p class=\"yf-1090901\">Of course, most Chinese tech giants trade cheaper than their U.S. peers for geopolitical reasons, and Alibaba also has strong competition on the e-commerce side. Nevertheless, for those seeking some China-specific exposure, Alibaba should be on the list, if not near the top.<\/p>\n<p class=\"yf-1090901\">Before you buy stock in Alibaba Group, consider this:<\/p>\n<p class=\"yf-1090901\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b56f0493-e5b1-41da-8539-8d586a39efcd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001138%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D18006&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cfbac96e-3a9c-40c2-9c1d-c32580974209\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Alibaba Group wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1090901\">Consider when <strong>Netflix<\/strong> made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $664,110<\/strong>!* Or when <strong>Nvidia<\/strong> made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, <strong>you\u2019d have $1,104,355<\/strong>!*<\/p>\n<p class=\"yf-1090901\">Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 1,069% \u2014 a market-crushing outperformance compared to 186% for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b56f0493-e5b1-41da-8539-8d586a39efcd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001138%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D18006%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DAlibaba%2520Group&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cfbac96e-3a9c-40c2-9c1d-c32580974209\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-1090901\">*Stock Advisor returns as of August 25, 2025<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/author\/16731\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Billy Duberstein;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Billy Duberstein<\/a> and\/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Alibaba Group. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/investing\/2025\/08\/29\/why-alibaba-rallied-today\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Why Alibaba Rallied Today;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Why Alibaba Rallied Today<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"Alibaba reported strong revenue growth and accelerating cloud growth. Artificial intelligence (AI) is center stage now, and AI-related&hellip;\n","protected":false},"author":2,"featured_media":32010,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,8472,289,290,18,19,17,82,22147],"class_list":{"0":"post-32009","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","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-eire","13":"tag-ie","14":"tag-ireland","15":"tag-technology","16":"tag-wall-street-journal"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/32009","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=32009"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/32009\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/32010"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=32009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=32009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=32009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}