• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Alibaba shares surge 11% in Hong Kong as strong earnings fuel China’s e-commerce rebound

by February 21, 2025
by February 21, 2025

Alibaba shares soared in Hong Kong on Friday, climbing as much as 11% after the Chinese tech giant reported robust quarterly earnings.

The strong performance was driven by growth in its cloud intelligence and e-commerce segments, signaling a broader recovery in China’s digital economy.

The stock was last trading 9.18% higher, reflecting investor confidence in Alibaba’s renewed momentum.

Analysts at Nomura highlighted that the company’s e-commerce business is expected to remain strong through the first half of 2025, supported by ongoing trade-in subsidies.

Last July, China allocated 300 billion yuan ($41.5 billion) in special government bonds to stimulate consumer spending and upgrade equipment, further aiding the sector’s recovery.

China’s tech rebound and Alibaba’s AI push

The surge in Alibaba’s stock also comes amid renewed optimism for China’s tech sector.

AI startup DeepSeek has recently drawn attention by positioning itself as a competitor to US tech firms with its R1 model, which claims superior performance at lower costs.

This has fueled bullish sentiment in the broader Chinese technology landscape.

Alibaba has also made significant strides in artificial intelligence, with Barclays noting that its AI cloud business is expanding rapidly.

The company’s flagship AI model, Qwen 2.5-Max, has driven a sharp increase in demand for AI inference services, which now account for up to 70% of new cloud demand.

Barclays analysts project that Alibaba’s AI and cloud infrastructure investment over the next three years will surpass its total spending of the last decade—estimated at nearly 270 billion yuan, CNBC reported.

Jack Ma re-emerges amid regulatory shifts

Adding to the positive sentiment, Alibaba founder Jack Ma made a rare public appearance earlier this week.

Ma participated in a private meeting with Chinese President Xi Jinping, where Xi encouraged private enterprises to innovate and contribute to economic growth in what he called a “new era” for business operations in China.

Alibaba has faced intense regulatory scrutiny since 2020, when Beijing forced its financial affiliate, Ant Group, to cancel its record-breaking initial public offering. However, the latest government signals suggest a more supportive stance toward the private sector, potentially paving the way for Alibaba’s continued expansion.

Alibaba reported a net income of 48.95 billion yuan ($6.72 billion) for the quarter ending December 31, significantly surpassing analyst estimates of 40.6 billion yuan. This represents more than a threefold increase from the 14.4 billion yuan recorded in the same period last year.

The company’s revenue also beat expectations, reaching 280.15 billion yuan, slightly above analyst projections of 279.34 billion yuan. The strong earnings prompted a surge in Alibaba’s U.S.-listed shares, which jumped more than 8% on Thursday.

With solid financials, a recovering e-commerce market, and growing investments in AI and cloud computing, Alibaba appears poised for further growth. Investor confidence is strengthening as the company navigates a shifting regulatory landscape and capitalizes on new opportunities in China’s digital economy.

The post Alibaba shares surge 11% in Hong Kong as strong earnings fuel China’s e-commerce rebound appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Bitcoin surges to $98,000, Solana and Ethereum rise while XRP slides
next post
Meta executives eligible for 200% salary bonus under new pay structure

Related Posts

Commerzbank sees China economic growth slowing in second...

June 27, 2025

JSW Paints to buy Akzo Nobel India for...

June 27, 2025

Europe markets open: stocks rise as US hints...

June 27, 2025

US-China sign trade deal, 10 more with trading...

June 27, 2025

Xiaomi stock price hits record high as Apple...

June 27, 2025

NTT Data Group plans Singapore REIT IPO in...

June 27, 2025

Jio Financial shares rally close to 5% after...

June 27, 2025

CAC 40 2025 outlook: Biggest winners and losers...

June 27, 2025

From best to worst: Why Trade Desk stock...

June 27, 2025

HBAR drops 1.63% as short bets rise and...

June 27, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • PBS and NPR: A Free Press Doesn’t Need a Government Budget Line 

    June 27, 2025
  • Trump v Powell: The Credibility Cost of Politicized Monetary Policy

    June 27, 2025
  • Consumer IoT Products are Priced 44% Higher on Average Than Similar Non-Connected Products

    June 27, 2025
  • Morse Micro Wi-Fi HaLow Technology Receives Matter Certification

    June 27, 2025
  • Nordic Semiconductor acquires Memfault, launches the first complete chip-to-cloud platform for lifecycle management of connected products

    June 27, 2025
  • PBS and NPR: A Free Press Doesn’t Need a Government Budget Line 

    June 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,641)
  • Editor's Pick (171)
  • Investing (185)
  • Stock (1,062)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Broadcom shares surge 10% after Q1-print: buy,...

March 8, 2025

Trump may slash China tariffs to 50%...

May 9, 2025

How auto sales are surging ahead of...

April 2, 2025