Alibaba Reports Strong Quarterly Results, Boosted by AI Momentum
Key Metrics:
* Adjusted earnings per share: RMB 20.39 vs. expected RMB 19.12
* Quarterly revenue: RMB 280.2 billion vs. expected RMB 277.4 billion
AI Strategy Drives Growth:
* Alibaba's AI-related product revenue continues to surge, sustaining triple-digit growth for six consecutive quarters.
* The company plans to aggressively invest in AI infrastructure over the next three years, exceeding past decade's investment.
Collaboration and Partnerships:
* Alibaba is reportedly interested in investing in DeepSeek, a Chinese firm developing a new AI model.
* The company is also partnering with Apple to integrate AI features into iPhones in China.
Revenue Breakdown:
* Cloud unit revenue rose 13% to RMB 31.7 billion, a smaller portion of overall revenue compared to the e-commerce division.
* E-commerce division revenue reached RMB 100.8 billion.
Future Outlook:
* Alibaba expects continued acceleration of revenue growth in its AI-driven Cloud Intelligence Group.
* The company acknowledges that aggressive investments may impact short-term profitability but anticipates significant future demand.
Disclaimer: This information is provided for informational purposes only and should not be construed as financial advice.