Why Alibaba Stock Is Soaring After Earnings
Alibaba stock is higher Thursday after the China-based e-commerce platform beat expectations for its fourth quarter. Here's what you need to know.


Alibaba (BABA) stock is surging Thursday after the Chinese technology powerhouse beat top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Alibaba's revenue increased 7.6% year over year to 280.2 billion yuan. Net profit rose 12.8% from the year-ago period to 21.39 yuan per share.
"This quarter's results demonstrated substantial progress in our 'user first, AI-driven' strategies and the re-accelerated growth of our core businesses," said Alibaba CEO Eddie Wu in a statement.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The CEO noted that customer management revenue (CMR) at Taobao and Tmall Group grew 9% on new initiatives to enhance user experience as well as effective monetization.
Wu also said revenue in Alibaba's Cloud Intelligence Group increased 13.1% year over year to 31.8 billion yuan, highlighted by triple-digit year-over-year growth in AI-related product revenue for a sixth consecutive quarter.
The results beat analysts' expectations. Wall Street was anticipating revenue of 278.5 billion yuan and earnings of 19.47 yuan per share, according to Investor’s Business Daily.
"Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate," Wu said.
Alibaba "will continue to execute against our strategic priorities in e-commerce and cloud computing," Wu added, "including further investment to drive long-term growth."
Alibaba to bring AI to the iPhone in China
Last week, Alibaba announced a partnership with Apple (AAPL) to bring its AI solutions to the iPhone in China, according to CNBC.
″[Apple] talked to a number of companies in China, and in the end, they chose to do business with us," Alibaba Chairman Joe Tsai said. "They want to use our AI to power their phones."
Wu did not address the deal with Apple in his commentary on Alibaba's earnings.
Is Alibaba stock a buy, sell or hold?
Often referred to as the "Amazon.com (AMZN) of China," BABA stock is up nearly 50% already in 2025, outperforming the S&P 500 by more than 10 times. BABA soared in late January after the company introduced a new AI model it says outperforms DeepSeek and other competitors. Wall Street remains upbeat on the Chinese tech stock, though the share price has zoomed past analysts' 12-month price targets.
According to S&P Global Market Intelligence, the consensus recommendation among the analysts following the stock that it tracks is a Buy, with an average 12-month price target price of $122.82.
Financial services firm Susquehanna International Group reiterated its Positive rating (equivalent to a Buy) and maintained its $130 12-month price on BABA stock following the earnings release.
"BABA reported a fiscal year third-quarter with the overall top line 1% above consensus," noted senior analyst Shyam Patil after the earnings release but before Alibaba's conference call. Patil added that overall CMR was 6% above Susquehanna's forecast.
"International Commerce was 5% above on the top line and Cloud was 3% ahead," Patil said, "but Cainiao was 9% below consensus and Local Services was 16% below."
Though Alibaba did not provide guidance in its release, management "may share more color on the outlook on the call."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity Stake
ESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market Today
The iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
Stocks Rally on Apple Strength: Stock Market Today
The iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
What to Know About Multisector ETFs
Multisector bond funds allow investors to pick and choose among a wide array of assets.
-
I'm an Estate Planning Attorney: These Are the Two Legal Documents Everyone Should Have
Every adult should have a health care proxy and power of attorney — they save loved ones time, money and stress if a sudden illness or injury leaves you incapacitated.
-
I'm a Financial Professional: Here's My Investing Playbook for Political Uncertainty
For successful long-term investing in a politically charged environment, investors should focus on economic data, have a diversified portfolio and resist reacting to daily headlines.
-
Rally Pauses for Hot Earnings, Cool Data: Stock Market Today
Markets were mostly mixed Tuesday after decisive moves Friday and Monday.
-
The Truth About the Dark Side of Rooftop Solar Panels
Rampant bankruptcies in the solar panel industry have left many consumers with systems that don't work and no way to get them fixed. Worse, they're being hounded to keep paying despite not receiving what they were promised. What can they do?
-
Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
Here are several ways financial professionals can help their clients maximize opportunities in the One Big Beautiful Bill Act, which extends key TCJA provisions, introduces increased deductions for people 65 and older and more.
-
Dow Rises 585 Points on Rate Cut Hope: Stock Market Today
Stocks moved more than 1% again Monday, this time to the upside following the Jobs Friday sell-off.