Alibaba Shares Soar 15% on Strong Earnings and AI Growth; Jack Ma Reappears

Alibaba’s Shares Surge After Strong Growth

Alibaba’s shares jumped in Hong Kong on Friday after strong quarterly results. The company saw major growth in cloud intelligence and e-commerce. The stock soared 14.89%, exciting investors.

Nomura predicts Alibaba’s e-commerce business will stay strong in early 2025. The continued trade-in subsidies will help boost sales. China is making efforts to increase spending. Last year, the government allocated 300 billion yuan ($41.5 billion) in special bonds. This move aims to support trade-in policies and upgrade equipment.

E-commerce in China is recovering. Profits are growing steadily. The technology sector is also improving.

According to CNBC: Chinese tech stocks are rising fast. AI startup DeepSeek is making headlines. It is competing with U.S.-led AI companies. The R1 model claims better performance at lower costs. Experts believe AI will reshape the market. Alibaba’s growth is part of this larger trend. Investors are watching closely.

Alibaba will invest heavily in AI and cloud infrastructure over the next three years. Barclays expects this to be its most focused investment period.

Jack Ma’s Rare Appearance and Alibaba’s Growth in AI

Jack Ma, the founder of Alibaba, has stayed out of the spotlight since 2020. He recently joined a private meeting with Chinese President Xi Jinping. During the meeting, Xi urged private businesses to show their abilities. He encouraged them to stay confident in the “new era” of business.

Alibaba faced strict government actions starting in 2020. Beijing forced its financial technology affiliate, Ant Group, to cancel its IPO. This regulatory crackdown affected the company’s growth plans.

Alibaba is making big moves in AI and cloud technology. The company launched its Qwen 2.5-Max AI model. noted that Alibaba is seeing a high demand for AI services. Up to 70% of new demand comes from AI inference.

Barclays believes Alibaba will invest heavily in AI and cloud infrastructure. Experts say the next three years will be Alibaba’s biggest investment period. The company plans to spend more than 270 billion yuan. This is more than its total investment over the last ten years.

Alibaba reported impressive financial results for the last quarter. The company’s net income reached 48.945 billion yuan ($6.72 billion). Analysts expected 40.6 billion yuan. This was more than three times higher than last year’s 14.4 billion yuan.

Alibaba’s revenue also exceeded expectations. It reached 280.15 billion yuan, surpassing the estimated 279.34 billion yuan. Investors reacted positively to these results. The company’s U.S.-listed shares jumped over 8% on Thursday.

Alibaba’s strong performance shows its rapid recovery. The company continues to focus on AI and cloud growth. Investors remain optimistic about its future.