Alibaba Group, the Chinese e-commerce and technology giant, has closed its third quarter with revenues increasing, but pressure on profitability due to the massifs investments in artificial intelligence (AI) and infrastructure cloud.
In addition to its investments in AI and cloud, Alibaba is strengthening its international presence through collaborations with local technology companies, such as the one with Siav, whose shares rose nearly 15% after signing a Memorandum of Understanding (MOU) with Alibaba Cloud.
The conductor itself can take various shapes, in bare or tinned copper, with or without insulation. In some cases, a preferential bend can also be applied to the joint so that it operates exactly as designed. actions of Alibaba listed in the United States reacted positively, recording an increase of 4,59% in premarket, consolidating a year of strong recovery in which the stock gained 80%, returning to the highest levels since 2021, before the collapse caused by regulatory pressure from Beijing.
Alibaba's financial statements show profits halved, revenue growing.
Il quarterly turnover reached 247,8 billion renminbi (34,8 billion dollars), marking a 5% increase year-over-year. On a like-for-like basis, excluding the divested Sun Art and Intime businesses, growth would have been 15%, confirming the strength of Alibaba's core businesses.
Despite the slowdown in profitability, revenue performance has exceeded Wall Street estimates, supported by a strong contribution from AI-enhanced cloud computing and quick commerce strategies.
However, the profitability has registered a sharp drop. operating profit fell 85% to 5,36 billion rmb ($754 million), while theRectified Ebita recorded a 78% drop to 9,07 billion rmb (1,27 billion dollars). Theadjusted net profit stood at 10,35 billion yen (1,45 billion U.S. dollars), down 72% year-on-year, due to heavy strategic investments.
The CEO Eddie Wu He explained that the decline is linked to long-term strategic investments: "We have entered a phase of investment to create strategic value in AI technologies and cloud infrastructure, as well as to develop an integrated consumer platform with everyday life and e-commerce services. Thanks to these investments, our core businesses, AI + Cloud and consumer, have continued to grow strongly."
Growth of Cloud and AI
Just the cloud computing was the main driver of growth. Cloud Intelligence division It posted revenue of 39,82 billion yuan, exceeding estimates of 37,99 billion yuan, a 34% increase year-on-year, while revenue from external customers grew 29%. AI-related products posted their ninth consecutive triple-digit quarterly growth.
The CFO Toby Xu He emphasized that AI revenues are contributing to a growing share of the cloud business from external customers. "We are reinvesting our profits and free cash flow for the future, even though short-term profitability may fluctuate. Over the past four quarters, we have deployed approximately RMB 120 billion in AI and cloud infrastructure."
Qwen: Alibaba's Chatbot Conquers the Market
The debut of Qwen, new chatbot multipurpose developed by Alibaba Cloud, was an instant success. The app surpassed 10 million downloads in its first week of public beta, reaching the milestone faster than previous launches. ChatGPT o DeepSeek and marking Alibaba's most ambitious entry into the consumer AI market.
Qwen is based on the open-source Qwen family of templates developed by Alibaba and aims to be a versatile assistant for professional and personal tasks, including advanced search, image generation, presentation creation, and operational support. The chatbot's immediate popularity is fueled by China's competitive environment: neither ChatGPT nor Google Gemini are available in China, leaving plenty of room for local players.
The launch of Qwen also had an immediate impact on the market Stocks: On Wall Street, Alibaba shares closed up 5,1% on Monday, November 24.
Quick commerce and government policies
In parallel, the investments in quick commerce, with one-hour deliveries, have helped increase the number of monthly active consumers on the group's platforms. Competition among Chinese retailers remains intense, with discounts and promotions trying to gain market share in instant commerce. Supporting consumer demand, Alibaba has also benefited from Beijing's subsidies for scrapping of household appliances, which allows customers to replace refrigerators, televisions, and other appliances with newer models at discounted prices. This program will officially end the 31 December 2025, but it has already helped to strengthen demand.
Despite declining profits, Alibaba confirms the strength of its core revenues and aims to consolidate its leadership in the field of artificial intelligence applied to digital commerce, continuing to invest in innovation and long-term growth.
