Alibaba stock surges as Chinese tech giant touts 'robust' AI momentum
Published On Feb 20, 2025, 9:40 AM
Alibaba's stock surged nearly 13% after reporting quarterly earnings that exceeded Wall Street's expectations. The company highlighted a strong momentum in its artificial intelligence initiatives, which continue to show triple-digit revenue growth for the sixth consecutive quarter. Alibaba's earnings per share beat forecasts, and the company plans to increase capital expenditure for AI infrastructure significantly in the next three years. CEO Eddie Wu emphasized that this period will see the most concentrated investment in building cloud and AI capabilities, driven by anticipated high demand. Despite the increased spending potentially affecting short-term profitability, the long-term outlook remains promising as the company pursues growth in the AI sector.
Stock Forecasts
BABA
Positive
Alibaba's focus on AI and the robust earnings report showcase strong revenue potential in a growing market. The anticipated surge in AI cloud demand aligns well with its strategic investments, suggesting a positive outlook.
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