Stock Track | BABA-WR Soars 13.47% on Strong Q1 Results and AI+Cloud Investment Push

Stock Track09-01

BABA-WR (89988) stock surged 13.47% in Monday's trading session, following the release of impressive first-quarter fiscal year 2026 financial results and the company's aggressive push into AI and cloud technologies. The robust performance and strategic focus on high-growth areas have reignited investor confidence in the Chinese tech giant.

Alibaba reported a 10% year-over-year revenue growth, reaching RMB 247.652 billion, while net profit soared 76% to RMB 42.382 billion. The standout performer was the company's cloud business, which saw revenue increase by 26% year-over-year, marking its highest growth rate in three years. Notably, AI-related product revenue has achieved triple-digit year-over-year growth for eight consecutive quarters, underscoring Alibaba's successful pivot towards next-generation technologies.

The company's commitment to AI and cloud computing was further emphasized by a record-breaking quarterly capital expenditure of RMB 38.6 billion in this sector, representing a staggering 220% year-over-year increase. Alibaba's CEO, Eddie Wu, reaffirmed the company's dedication to its three-year RMB 380 billion investment plan in AI and cloud, despite potential changes in chip supply policies. Additionally, Alibaba's foray into instant retail is showing promising results, with the Taobao app's monthly active consumers growing 25% year-over-year in early August, further diversifying its revenue streams and strengthening its position in the competitive e-commerce landscape.

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