Forbesยท2025-09-01 09:00Core Insights - Alibaba's shares surged 18.5% in Hong Kong, driven by positive investor sentiment regarding its advancements in AI and core e-commerce despite challenges in the food-delivery sector [1] - The company's market capitalization reached HK$2.7 trillion ($346.5 billion) following a strong quarterly performance [2] - Alibaba's cloud computing division reported a 26% revenue increase to 33.4 billion yuan ($4.7 billion), with AI-related product sales showing triple-digit year-on-year growth [3] Financial Performance - Alibaba's operational income decreased by 3% year-on-year to 35 billion yuan due to competitive subsidies in the food-delivery market, but net income rose 76% to 42.4 billion yuan, aided by equity investment value changes [5] - Total revenues increased by 2% year-on-year to 247.7 billion yuan [5] Market Trends - Analysts predict accelerated cloud revenue growth over the next two years due to strong demand for AI-related services [4] - Investment in food delivery and quick commerce is expected to enhance sales, as users attracted by coupons are directed to Alibaba's Taobao app [6] User Engagement - Taobao experienced a 25% year-on-year increase in monthly active users in early August, with 978 million users reported in May [7] - Customer management revenue, from online marketing services, rose 10% in the June quarter to 89 billion yuan, with expectations for continued growth as the user base expands [8]