Chinese giant Alibaba posts profit and revenue beat in December quarter amid strength in cloud unit

Core Insights - Alibaba's restructuring may serve as a model for the broader Chinese tech industry, aligning with Beijing's goals to reorganize major tech firms while unlocking significant shareholder value [1] Financial Performance - Alibaba reported a net income of 48.945 billion yuan ($6.72 billion) for the quarter ending December 31, exceeding the LSEG forecast of 40.6 billion yuan [2] - Revenue for the same quarter was 280.154 billion yuan, slightly above analyst expectations of 279.34 billion yuan [2] - The company's stock has increased by approximately 50% on both the New York and Hong Kong exchanges year-to-date [2] Strategic Initiatives - Alibaba's CEO Eddie Wu highlighted the company's progress in "user first, AI-driven" strategies, noting a re-acceleration in the growth of core businesses [3] - Cloud revenue growth reached 13%, marking a return to double-digit growth, while AI-related product revenue has seen triple-digit growth for six consecutive quarters [3] - The company anticipates continued acceleration in revenue growth for its Cloud Intelligence Group, driven by AI advancements [3]