Alibaba reported stronger-than-expected June quarter earnings driven by cloud growth and a rebound in e-commerce, according to CNBC. Net income is climbing 78% year-on-year to 43.11 billion yuan, versus 28.5 billion yuan expected. Revenue rose 2% to 247.65 billion yuan, falling short of estimates of 252.9 billion yuan. Alibaba credited its bottom-line beat to investment gains and the disposal of Turkish e-commerce firm Trendyol, offset by weaker operating income. Growth was driven by Alibaba’s cloud computing division, where revenue rose 26% year-on-year to 33.4 billion yuan, with AI-related product revenue growing triple-digits for the eighth straight quarter. The company is also developing a new AI chip to bolster its cloud offerings. Shares surged more than 19% in Hong Kong on Monday before paring gains.
