BABA Stock Rises Pre-Market As AI-Driven Cloud Growth Drives Revenue Beat

• The company’s second-quarter revenue rose 5% to RMB 247.80 billion, compared with analysts’ expectations of RMB 243.2 billion, according to data compiled by Fiscal AI. 
• Alibaba said that it was seeing accelerated adoption of its AI products across a broad range of enterprise customers, with a growing focus on value-added applications, including coding assistants.
• The company said that its quick commerce business has substantially improved its unit economics since September.

Alibaba Group Holding (BABA) shares rose nearly 4% in premarket trading on Tuesday as investor optimism gathered momentum after the company’s upbeat second-quarter revenue and CEO Eddie Wu’s remarks on robust AI demand accelerating the Cloud Intelligence Group business.

“With our significant strategic investments in these areas, our two core businesses of AI + Cloud and consumption continued to deliver strong growth this quarter,” Wu said.

He added that Cloud Intelligence Group's revenue was up 34% for the quarter ended September 30, and AI-related product revenue achieved triple-digit year-over-year growth for the ninth consecutive quarter.

The company’s second-quarter revenue rose 5% to RMB 247.80 billion ($34.89 billion), compared with analysts’ expectations of RMB 243.2 billion, according to data compiled by Fiscal AI.

Alibaba’s adjusted net income was RMB 10.35 billion, compared to RMB 36.52 billion in the same quarter of 2024.

BABA CFO View

CFO Toby Xu said that Alibaba’s core businesses continued to deliver revenue growth, with AI revenue contributing to an expanding share of its cloud revenues from external customers, and customer management revenue being up 10%.

“We are re-investing our profits and free cash flow for the future, while near-term profitability is expected to fluctuate. Over the past four quarters, we have deployed approximately RMB120 billion in capital expenditure toward AI and cloud infrastructure,” said Xu.

Alibaba said that it was seeing accelerated adoption of its AI products across a broad range of enterprise customers, with a growing focus on value-added applications, including coding assistants. “We will continue to invest in anticipation of customer growth and technology innovation, including AI products and services, to increase adoption of AI infrastructure cloud and strengthen our market leadership,” Alibaba said.

E-commerce Growth

Alibaba said its quick commerce business has substantially improved unit economics since September, driven by higher fulfillment logistics efficiency, strong customer retention, and rising average order value.

“As part of our strategy to generate synergies between quick commerce and the rest of Alibaba’s ecosystem, we accelerated the onboarding of Tmall brands to our quick commerce channel to expand product offering and meet consumer needs for on-demand delivery,” the company said.

Alibaba onboarded offline stores from nearly 3,500 Tmall brands to the quick commerce business as of October 31, 2025.

What Is Retail Thinking?

Alibaba’s ticker was the top third-trending one on Stocktwits. Retail sentiment on Alibaba jumped to ‘bullish’ territory from ‘extremely bearish’ a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Shares of Alibaba have gained nearly 90% this year. 

RMB 1 = $0.14

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Also See: Amex GBT Reportedly Mulls Potential Sale, Retail Turns Bullish

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