Alibaba’s actions shoot 11% in Hong Kong after star profits as China’s electronic commerce sector recovers

Alibaba The actions increased in Hong Kong on Friday After the stellar quarterly resultsdriven by growth in the cloud intelligence and electronic commerce segments.

The actions of the Chinese technological giant shot up to 11%, and a 9.18% higher were quoted.

“We hope that Baba’s electronic commerce business is kept strong in 1HCy25F, driven by continuous exchange subsidies,” Nomura said in a note on Friday.

In a Attempt to stimulate consumptionLast July, China revealed plans to assign 300 billion yuan ($ 41.5 billion) in Ultra Largo government bonds to improve its current equipment update and update policy.

The national growth of electronic commerce is recovering towards growth and sustainable profits, and the general feeling is promoting the broader China technological sector, Vey Serning, UBP senior capital advisor, said in an email to CNBC.

Chinese technological actions have been in a tear since the Deepseek startup stood out, challenging the ecosystem of the United States with its R1 model in the midst of higher performance statements and substantially lower costs.

Jack Ma, the founder of Alibaba, who has remained largely outside the center of attention since 2020, participated in a Rare Private Meeting organized by Chinese President Xi Jinping Mondays. During the session, XI encouraged private companies to “show their skills” and increase their confidence in a “new era” for their operations.

Alibaba became the objective of an intense regulatory repression of Beijing, which started in 2020 When regulators forced regulators to cancel their initial public offer.

Alibaba has been making “significant advances” by advancing in his AI cloud business after launching his model of the AI ​​Baddation of 2.5 Max. to 70% of its new demand.

“However, great opportunities often require significant investment,” said Barclays.

“The next three -year period will probably be the unique period in which Alibaba makes the most concentrated investment in AI and the construction of cloud infrastructure,” said Barclays analysts, and added that their planned investment is prepared to be more What Giant technology has happened in the last 10 years combined, which is almost 270 billion.

The company reported on Thursday a net income of 48,945 billion yuan ($ 6.72 billion) for the quarter that ended on December 31, exceeding LSE estimates of 40.6 billion yuan and more than three times more than 14.4 one billion yuan in the same period last year.

Alibaba’s revenues of 280.15 billion yuan were also above the expectations of analysts of 279.34 billion yuan.

The actions of the company that appear in the USA. UU. More than 8% rose on Thursday after the launch of the results.

– Ruxandra Iordache, Evelyn Cheng and Anniek Bao of CNBC contributed to this report.