Alibaba stock jumped early Tuesday as the Chinese e-commerce giant beat revenue expectations and signaled robust AI demand and cloud growth.
Alibaba reported a 34% rise in cloud computing revenue to 39.8 billion yuan versus expectations of 37.9 billion yuan. That growth rate was faster than the 26% notched in the June quarter.
Class A shares of the Alger International Opportunities Fund underperformed the MSCI ACWI ex USA Index during the third quarter of 2025. Returns from individual stock selection detracted from relative performance, while factor exposures had a positive impact. Among countries, the Netherlands, Belgium, and Spain provided the largest contributions to relative performance, while Japan, the United Kingdom, and China were the most notable detractors from relative performance.
Alibaba Group (NYSE:BABA) shares moved higher after it launched Qwen, a new AI chatbot aimed at competing with rivals such as OpenAI's ChatGPT and Google's Gemini. The app, which unifies the Hangzhou, China-based company's previous iOS and Android AI offerings under a single brand, saw more than 10 million downloads within a week of its relaunch.
Alibaba has seen hundreds of billions of dollars wiped off its share price from its peak. The company has faced a regulatory crackdown from Beijing as well as internal turmoil.
The company's Qwen app notched more than 10 million downloads within the first week, highlighting strong demand for consumer-driven AI.
The S&P 500 (SP500) and Nasdaq (COMP.IND) suffered losses last week, but Fed rate-cut hopes provided some relief ahead of Thanksgiving. Alibaba (BABA) draws attention with upcoming earnings; opinions diverge as JR Research upgrades to Buy citing AI/cloud growth, while KM Capital maintains Strong Sell.
Alibaba Group Holding has validated its tremendous resilience in China's e-commerce and cloud sectors, defying previous "uninvestable" concerns around Chinese equities. BABA's AI-driven initiatives and cloud intelligence revival underpin margins recovery and position the company as one of the foremost leaders in China's AI industry. Despite ongoing macroeconomic and geopolitical headwinds, BABA's robust fundamentals and rational capital investments support its long-term growth narrative.
BABA faces mounting headwinds ahead of Q2 FY2026 earnings. Investors should wait for a better entry point as deflation and competition pressure results.
China's Alibaba has launched a major upgrade to its AI chatbot, marking an aggressive push into the consumer artificial intelligence market where it has lagged rivals.
In the closing of the recent trading day, Alibaba (BABA) stood at $157.71, denoting a +2.54% move from the preceding trading day.
BABA's AI strategy faces mounting skepticism as execution risks and fierce competition threaten to undermine profitability despite impressive growth metrics.