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Alibaba Sees Historic Opportunities As CEO Points To AI And Quick Commerce Wins

Alibaba Group Holding (NYSE:BABA) shares climbed on Friday following the release of its fiscal first-quarter results, as the e-commerce giant co-founded by Jack Ma reported revenue that exceeded analyst expectations.

The company posted quarterly revenue of $34.57 billion, up 2% year-over-year, surpassing the consensus estimate of $34.26 billion.

On a like-for-like basis, excluding revenue from the divested Sun Art and Intime businesses, Alibaba’s revenue would have grown 10% year-over-year.

Also Read: Alibaba Stock Slides Ahead of Earnings as AI Push, Cloud Growth, and China Risks Take Center Stage

Despite the top-line beat, adjusted earnings per American Depositary Share (ADS) came in at $2.06, falling short of the analyst consensus of $2.13.

Adjusted net income declined 18% to $4.68 billion, while adjusted EBITA slipped 14% year-over-year to $5.42 billion, reflecting investments in Taobao Instant Commerce and enhancements to user experiences, acquisitions, and technology.

Net income, however, surged 76% year-over-year, driven primarily by mark-to-market gains from equity investments and the disposal of Trendyol’s local consumer services business.

Alibaba’s China E-commerce Group drove core growth, with revenue rising 10% to $19.55 billion. ...