By Callum Keown
Alibaba stock jumped early Tuesday as the Chinese e-commerce giant beat revenue expectations and signaled robust AI demand and cloud growth.
The company's American depositary receipts, which are up 90% this year through Monday's close, pointed 4.1% higher ahead of the open. The stock surged 5% in the previous session after Alibaba revealed its relaunched AI chatbot Qwen notched more than 10 million downloads in the first week.
The tech conglomerate's fiscal second-quarter earnings solidified its AI credentials. Revenue from its cloud unit jumped 34% year over year, while AI-related product revenue achieved triple-digit growth for the ninth consecutive quarter.
Alibaba, which Barron's recommended in December last year, is making a significant pivot to AI, including plans to invest some $53 billion into the technology in the next three years. It already looks to be paying off.
The company reported revenue of 247.8 billion yuan ($34.8 billion), beating expectations of Yen243.2 billion according to analysts polled by FactSet. Adjusted net income fell 72% year over year to Yen10.4 billion ($1.5 billion), but beat estimates of Yen5.8 billion.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 25, 2025 06:19 ET (11:19 GMT)
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