Alibaba's Hong Kong-listed shares surged 14.56% on Friday after the company reported better-than-anticipated quarterly earnings and announced a commitment to make \"aggressive\" investments in artificial intelligence (AI) and cloud computing over the next three years.
The earnings report revealed an 8% increase in revenue, reaching 280 billion yuan ($38.6 billion) for the quarter ending December 2024, marking the fastest revenue growth in over a year for the e-commerce giant.
During Thursday's earnings call, CEO Eddie Wu stated that Alibaba plans to invest more in AI and cloud infrastructure in the coming three years than the company has in the past decade combined. Although specific investment figures were not disclosed, Alibaba's capital investment for the nine months ending December 31 stood at 61.4 billion yuan.
On cloud and AI-related product revenues, Alibaba reported a 13% increase and sustained triple-digit growth, respectively, for the October-December quarter of 2024. According to company filings, AI-related products have maintained triple-digit revenue growth for six consecutive quarters, highlighting the company's successful expansion in these sectors.
Reference(s):
cgtn.com
