Chinese e-commerce powerhouse Alibaba has outperformed analysts’ projections for quarterly revenue, revealing remarkable growth.
Recent investments in one-hour delivery have attracted more users to its shopping platforms, while the robust performance of its cloud division underscored its versatility.
The company’s shares listed in the US climbed 2.5% during premarket trading.
Competing retailers in China are aggressively pursuing market share in the instant commerce sector, leveraging significant discounts and appealing promotions.
Alibaba has also gained from Beijing’s appliance trade-in subsidies.
This program allows consumers to trade in older appliances like refrigerators and TVs for newer models at reduced prices. Although, this initiative is gradually phasing out and is set to end on December 31.
The company reported an impressive revenue of 247.80 billion yuan ($34.97 billion) in the second quarter, surpassing estimates of 242.65 billion yuan based on data compiled by LSEG.
Alibaba is intensifying its focus on artificial intelligence, viewing it as a crucial driver of growth across both its cloud and consumer segments.
The company is investing billions into building AI infrastructure, developing models, and fostering product innovation.
