Alibaba stock rises on earnings and broader tech rally

Core Insights - Alibaba is focusing on "instant commerce" and AI as key growth drivers, with positive early results from these strategies [1] Financial Performance - For the quarter ending September 30, Alibaba reported a 15% revenue growth year-over-year, excluding divested retail operations, marking one of its strongest performances recently [2] - Revenue from instant commerce grew approximately 60%, driven by one-hour and same-day delivery services, enhancing user engagement and repeat purchases [3] - Alibaba Cloud revenue increased by 34%, fueled by demand for AI infrastructure, with external cloud revenue rising by 29% [6] Profitability Drivers - The profitability of Alibaba is significantly supported by its cloud computing segment, which is experiencing substantial growth due to AI-related services [5] - The company noted improvements in unit economics for its China commerce division, despite a decline in adjusted earnings compared to 2024 [4] International Expansion - Alibaba's international commerce division achieved a 10% revenue growth and reported profitability, indicating successful overseas operations [7] Market Reaction - Following the earnings report, Alibaba's stock rose by 5%, contributing to a broader tech rally, with an additional 3% increase observed heading into the next trading day [8]