Alibaba Group (NYSE:BABA)’s US-listed stock took off on Thursday after the Chinese eCommerce company’s quarterly earnings impressed.
Revenue of 280.15 billion yuan (US$38.38 billion), marked an 8% year-over-year increase and was ahead of Wall Street estimates of 279.34 billion yuan.
The company’s net profit of 48.95 billion yuan (US$6.72 billion) topped estimates of 40.6 billion yuan.
Adjusted earnings per American Depository Share (ADS) increased 13% from the year-ago quarter to $2.93.
“This quarter’s results demonstrated substantial progress in our ‘user first, AI-driven’ strategies and the re-accelerated growth of our core businesses,” Alibaba Group CEO Eddie Wu said in a statement.
The CEO highlighted Cloud revenue growth of 13%, with AI-related product revenue achieving triple-digit growth for the sixth consecutive quarter.
“Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate. We will continue to execute against our strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth.”
Alibaba ADSs had gained 9.5% to trade hands at about $138 late morning on Thursday.