Signage at the Alibaba Group Holding Ltd. offices in Beijing, China, on Wednesday, March 29, 2023. Alibaba’s overhaul could serve as a template for a restructuring of China Tech itself: a shake-up that achieves Beijings aim of carving up the countrys tech titans while unlocking potentially billions of dollars in pent-up shareholder value.
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Chinese e-commerce titan Alibaba on Thursday beat expectations on the top and bottom line in its December quarter, citing ongoing strength in its Cloud Intelligence unit.
Alibaba said net income hit 48.945 billion yuan ($6.72 billion) in the quarter ended Dec. 31, compared with an LSEG forecast of 40.6 billion yuan.
Revenue came in at 280.154 billion yuan, versus analyst expectations of 279.34 billion yuan.
The company’s stock has surged by around 50% on both the New York and Hong Kong exchanges in the year to date.
“This quarter’s results demonstrated substantial progress in our ‘user first, AI-driven’ strategies and the re-accelerated growth of our core businesses,” said Alibaba CEO Eddie Wu in a statement accompanying the results.
“Our Cloud revenue growth reignited to double digits at 13%, with AI-related product revenue achieving triple-digit growth for the sixth consecutive quarter. Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate.”
U.S.-listed shares of the company were up 4.3% at 05:53 ET, shortly after the release of the results.
This breaking news story is being updated.
