From Nasdaq: 2025-03-02 06:25:00

Alibaba’s stock (NYSE: BABA) soared after reporting 8% revenue growth and an 83% surge in operating income for the quarter ending Dec. 31, 2024. The results suggest Alibaba’s turnaround efforts are paying off, marking a positive shift for the tech giant.

Facing challenges like regulatory crackdowns and muted growth, Alibaba’s e-commerce and cloud computing revenues grew by just 5% and 3% respectively in fiscal 2024. The company underwent significant restructuring, adding uncertainty amidst concerns about its future growth potential.

Alibaba is revamping its e-commerce strategy to compete with younger rivals, focusing on affordability and AI-driven improvements. Recent financials show growth in customer management revenue, reflecting increased consumer and merchant spending on its platforms, signaling positive momentum in its e-commerce business.

Alibaba Cloud, China’s cloud computing leader, is showing signs of recovery under new leadership. With a 13% revenue growth rate and a focus on AI investments, the business is poised for growth in the coming quarters, potentially setting a new trajectory for Alibaba’s cloud computing arm.

Investors should keep an eye on Alibaba’s performance in the upcoming quarters, as positive trends in e-commerce and cloud computing could signal a turnaround for the tech giant. The company’s recent progress indicates a potential shift in direction, offering hope for its future performance.



Read more at Nasdaq: Alibaba Investors Could Finally Be Seeing Light at the End of the Tunnel