From Nasdaq: 2025-02-27 08:15:00

Alibaba Group (NYSE:BABA) has seen its stock soar by 52% in 2025, driven by strong performance in its cloud computing business. After an impressive earnings release, the company announced plans to invest over $52 billion in cloud computing and AI infrastructure over the next three years, pushing shares up by 8%.

Alibaba’s recent earnings showed revenues in line with expectations, but a big beat on adjusted earnings per share. Growth in its cloud intelligence and international digital commerce segments was robust, with Cloud Intelligence revenue growing by 13% and AI-related products driving significant growth. The company’s strategic focus on cloud and AI is evident in its $53 billion investment plan over three years.

Despite facing challenges investing in Chinese stocks, Alibaba’s dominance in cloud infrastructure revenue in China positions it as a key player in the global AI race. Recent government signals of cooperation with tech companies like Alibaba suggest a positive outlook for the stock. Wall Street analysts are also bullish, with an average implied upside of 24% post-earnings. Alibaba Group Holding Ltd. (NYSE: BABA) reported a 34% increase in revenue for the first quarter of 2021, reaching $31.87 billion. The Chinese e-commerce giant exceeded expectations with a net income of $5.73 billion, up 12% from the previous year. Alibaba’s cloud computing division also saw a 29% growth in revenue.



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