- BABA +5.10%
(Reuters) -Chinese e-commerce giant Alibaba (BABA) beat analysts' estimates for quarterly revenue on Tuesday, as investments in one-hour delivery helped drive more users to its shopping apps, while its cloud division reported strong growth.
U.S.-listed shares of the company rose 3% in premarket trading.
Major retailers in China are jostling for market share in the instant commerce space by offering big discounts and attractive deals.
NYSE - Delayed Quote • USD (BABA) Follow View Quote Details 160.73 +7.80 +(5.10%) At close: November 24 at 4:00:02 PM EST Advanced ChartAlibaba has also benefited from Beijing's appliance trade-in subsidies, which allow consumers to exchange older home appliances like refrigerators and TVs for newer models at discounted prices, though that scheme has begun winding down and officially ends on December 31.
The company reported revenue of 247.80 billion yuan ($34.97 billion) in the second quarter, compared with the estimates of 242.65 billion yuan, according to data compiled by LSEG.
The company has been doubling down on artificial intelligence as a catalyst for growth across its cloud and consumer ecosystems, channeling billions of dollars into AI infrastructure, model development and product innovation.
China's Ant Group posted a 10.3% rise in net profit to 8.37 billion yuan ($1.18 billion) in the three months to June 30, according to Reuters calculations based on Alibaba Group Holdings' earnings released on Tuesday. The e-commerce giant reports profit from Ant one quarter in arrears. Both groups were co-founded by Chinese billionaire Jack Ma and Alibaba holds a 33% stake in Ant.
($1 = 7.0853 Chinese yuan renminbi)
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Anil D'Silva)
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