Alibaba Reports Strong Earnings
"Cloud Business Drives Positive Results"
As the DeepSeek effect continues, Alibaba is maintaining its bid prices. Alibaba's stock price reportedly rose by 13.8% on the 21st.
According to foreign media on the day, Alibaba's stock price hit its highest level in over three years since November 2021. Alibaba's stock price has risen about 67% so far this year. Alibaba has seen the largest stock price increase among Chinese IT companies due to DeepSeek innovation. Alibaba is also a leading AI (artificial intelligence) company. It has its own developed chatbot.
Alibaba announced that its revenue for the fourth quarter of last year (October to December) reached about 280.1 billion yuan (approximately 55.4 trillion won), slightly exceeding the market forecast of about 279.3 billion yuan (approximately 55.2 trillion won) compiled by LSEG.
CEO Wu Yongming stated in the earnings release, "We will continue to adhere to the strategy of focusing on online sales and cloud business and keep investing for long-term growth." Regarding the AI business, he said, "This is a once-in-decades industry transformation opportunity," adding, "Alibaba will invest more in AI and cloud computing sectors than ever before."
Alibaba is competing in the market with its AI model 'Qwen.' At the same time, Alibaba recently opened a data center in Mexico for its cloud business and is pioneering the Latin American market. Additionally, Alibaba announced a partnership with Apple to develop AI. Focusing on online sales and cloud business, Alibaba is also undergoing business transformation, including downsizing its physical store operations.
Morgan Stanley strategist Laura Wang positively evaluated Alibaba's performance and investment plans and emphasized the need to reassess China's capabilities in the global technology competition surrounding AI.
Meanwhile, on the 17th, Alibaba founder Jack Ma attracted investors' attention by attending a private enterprise forum hosted by Chinese President Xi Jinping. Five years ago, Jack Ma publicly criticized the Chinese government's financial policies and fell out of favor with President Xi. Since then, Alibaba became a target of intense regulation, but his recent official public reappearance is being seen as a symbolic sign of restored relations with the government and regulatory easing.
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