The Ali Baba office building in Nanjing, Jiangsu County, China, on August 28, 2024.
CFOTO | Future publishing Gety pictures
Ali Baba A better summary of the one expected in the June quarter -finals was fueled by the rapid sales in its cloud computing unit and reviving the continuation of e -commerce works.
However, the Chinese giant’s revenues came under the expectations of analysts.
Alibaba shares increased by more than 3 % in the pre -market in the United States after dipping it at first.
Here is how Ali Baba did in the first quarter of June, compared to Lseg estimates:
- profit: 247.65 billion Chinese yuan (34.6 billion dollars), compared to 252.9 billion yuan expected.
- Net income: 43.11 billion yuan, compared to the expected 28.5 billion yuan.
Revenue increased by 2 % on an annual basis, while the company’s net income increased by 78 %. Alibaba attributed the increase in profits to the gains in some of its investments from stocks and get rid of the Turkish e -commerce company Trendyol. This has been compensated by lower income from operations.
However, with the exception of investment gains, Alibaba’s net income had decreased by 18 % on an annual basis as investment continued in the immediate trading area of China.
Alibaba has an accurate balancing law between investment areas such as artificial intelligence and new e -commerce models, while showing that it can continue to grow in the competitive market in China. So far, investors have rewarded Ali Baba by 40 % in the shares listed in the United States this year.
This is partly preferred to accelerate the continuous growth in the main cloud computing section in addition to improvements in both e -commerce companies in China and e -commerce.
The cloud is accelerating
Cloud computing was one of the bright points.
Ali Baba said that revenues in the department amounted to 33.4 billion yuan, an increase of 26 % on an annual basis. This was 18 % faster growth rate in the previous quarter. The Alibaba cloud unit is seen as a key to the company that controls artificial intelligence, such as Microsoft or Google.
“Driven at the request of strong artificial intelligence, the Cloud Intelligence Group group has seen an accelerated growth in revenue, and AI’s product revenue is now a large part of revenue from external customers,” Edi Wu, CEO of Alibaba, said in a statement.
Investors focus on Alibaba investments in artificial intelligence, as he has become a major global player. The company has I strongly launched artificial intelligence models And sell services through the cloud computing section.
While Alibaba Ai focused open source – which means that its models can be used for free and built by developers – it also sells artificial intelligence services through its cloud unit.
Alibaba said that AI’s product revenue “maintained a three -numbers on an annual basis for the eighth quarter in a row.”
The modified profits before benefits, taxes and firefighting (EBITA), a scale of profitability, jumped by 26 % on an annual basis in the cloud unit.
New York’s Alibaba shares increased by more than 40 % this year with the growth of revenues in the basic Chinese e -commerce business to improve The cloud computing section is accelerating.
The company deals with uncertainty in the Chinese economy, Who lost momentum in July. Earlier this year, Beijing launched initiatives To enhance consumption.
Wars of “fast trade”
The basic e -commerce works from Alibaba, which represents more than 50 % of revenues, achieved mixed results.
In general, revenue increased by 10 % year on an annual basis to 19.6 billion yuan. Alibaba’s customer management revenues from selling marketing and other services to traders on their platform jumped by 10 %. CMR represents the bulk of e -commerce revenues.
However, the modified profits in the section decreased by 21 % in the quarter on an annual basis. This is because alibaba was invested extensively in the so -called fast or immediate trade. This feature is presented on Taobao, and it is one of the main Chinese e -commerce applications in Alibaba, which this year provides delivery of some products in China within one hour
Competition is intense in China, with their competitors including the Meituan and JD.com food giant, and they are all involved. Competition already affects some of these companies, with Metan this week send 89 % drowns in the adjusted quadruple profit in the second quarter.
The Rapid Trade Department of Alibaba has achieved revenues of more than 14.8 billion yuan, or two billion dollars, and 12 % on year.
However, investors appear well with immediate trade investments from Alibaba, because their cloud computing continues to grow, while the International online shopping unit – which includes aliexpress – has witnessed a 19 % jump in a quarter with narrowing losses.
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