In this article9988-HK your favorite stocksCREATE FREE ACCOUNTSignage at the Alibaba Group Holding Ltd. headquarters in Hangzhou, China, on Thursday, Feb. 6, 2025.
Qilai Shen | Bloomberg | Getty ImagesAlibaba's Hong Kong listed s surged more than 19% on Monday as the Chinese giant's cloud computing unit drove strong quarterly results, while details emerged over its new AI chip development.It's the highest level for the stock since March.
Investors have backed the company's imving performance in its key cloud unit and are content with the the giant's investment into new areas — particularly in the so-called "instant commerce," which has become incredibly competitive in China.The Hong Kong rally builds on the momentum of Alibaba's earnings report of Friday, when the company's New York-listed s closed nearly 13% higher.Alibaba last week week posted revenue for the June quarter of 247.65 billion Chinese yuan ($34.73 billion), marking a 2% year-on-year rise that nevertheless missed analyst expectations.
On the upside, a 78% annual surge in net income came in ahead of forecasts.The Chinese company's cloud computing unit was a bright spot with revenue picking up by an annual 26%, which was a faster growth rate than seen in the previous quarter.
Alibaba's cloud growth has been accelerating over the last few quarter. some of its Chinese and U.S.
rivals, Alibaba has been in AI infrastructure and its own models, as well as selling AI services for its cloud computing unit.
Investors see the division as key to the company's efforts to monetize artificial intelligence, much Microsoft or Google.AI-related duct revenue "maintained triple-digit year-over-year growth for the eighth consecutive quarter," the company said Friday.That same day, CNBC reported that Alibaba is a new AI chip, which also supported the price rally on Monday.Alibaba's core e-commerce has meanwhile been showing signs of revival, while the company has jumped into China's cut-throat instant commerce space in China.
This is a feature introduced this year on Taobao, one of Alibaba's main Chinese e-commerce apps, which vides deries of certain ducts in China within an hour.Investments in quick commerce weighed on Alibaba's adjusted earnings for its e-commerce .
Investors have given the company some leeway to invest for now.