Business

Alibaba revenue rises on strong cloud computing and e-commerce growth

Yesterday 12:15

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Alibaba Group reported a rise in quarterly revenue, driven by strong performance in its cloud computing and artificial intelligence divisions, alongside steady growth in its e-commerce operations.

The Chinese technology giant posted a 3% increase in revenue for the fourth quarter, supported by expanding demand for digital services and improved consumer activity following government-backed stimulus measures. Investors reacted positively, with the company’s U.S.-listed shares rising in premarket trading.

A key driver of growth was Alibaba’s cloud computing unit, which recorded a sharp increase in revenue, reflecting rising demand for artificial intelligence solutions and enterprise digital infrastructure. The company has been investing heavily in AI-powered tools designed to support businesses in tasks such as data processing, document editing, meeting transcription, and research automation.

In recent years, Alibaba has positioned itself as a major player in the global AI race, introducing enterprise-focused platforms that integrate multiple AI agents to improve productivity and streamline complex workflows.

China’s broader e-commerce sector has also benefited from targeted government subsidies aimed at boosting consumer spending, particularly on electronic goods. These measures have helped stabilize demand in a challenging economic environment marked by weak consumer confidence and pressure from rising living costs.

Analysts note that while structural challenges remain in the Chinese economy, including a prolonged property market slowdown, digital sectors such as cloud computing and AI continue to show strong resilience and long-term growth potential.