Alibaba Group Holding Limited shares rise over 5% pre-market after Q1 results, currently trading at $125.57.
Alibaba Group Holding Limited (BABA) reported its fiscal first quarter earnings, with shares rising over 5% in pre-market trading, currently trading at $125.57. The company's revenue rose 2% year-on-year to 247.65 billion Chinese yuan, although it missed analyst expectations. Net income jumped 78% to 43.11 billion yuan, driven by gains from equity investments and the disposal of Turkish e-commerce firm Trendyol [1].
Revenue at Alibaba's cloud division totaled 33.4 billion yuan, up 26% year-on-year, highlighting the company's growth in artificial intelligence (AI) services. The company's AI-related product revenue maintained triple-digit year-over-year growth for the eighth consecutive quarter, with adjusted earnings before interest, taxes, and amortization (EBITA) in the cloud unit jumping 26% [1].
Alibaba's stock has appreciated by 51% over the past 12 months, trading at a forward P/E ratio of 14.26, which is approximately 22% lower than its peers. The company's strong fundamentals and strategic initiatives, such as partnerships with Lenovo to create AI-driven electric vehicle (EV) ecosystems, signal significant momentum in the tech sector [3].
Institutional investors have shown increased interest in Alibaba, with 7G Capital Management LLC acquiring 75,000 shares valued at approximately $9.9 million in the first quarter [5]. Despite the challenges faced by Chinese tech companies, Alibaba's focus on AI, cloud computing, and strategic alliances makes it a compelling investment opportunity.
References:
[1] https://www.cnbc.com/2025/08/29/alibaba-baba-june-quarter-2025-earnings-report.html
[3] https://www.ainvest.com/news/alibaba-277-billion-tech-conglomerate-trading-discount-2508-2/
[5] https://www.marketbeat.com/instant-alerts/filing-75000-shares-in-alibaba-group-holding-limited-baba-acquired-by-7g-capital-management-llc-2025-08-24/
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