Alibaba Stock Hits 52 Week High on Strong Q3 Results and Expansion Plans

Alibaba shares (HKG: 9988) are up big today, gaining 8.53%, and setting a new 52 week high on the U.S market (NYSE: BABA) at $144.51. The jump brings the YTD gain to 60.71% and comes as the company delivered strong earnings beats on both the top and bottom line.

In its latest financial report, Alibaba announced a revenue growth of 8% year-on-year, reaching $38.38 billion. This figure surpassed the analyst consensus estimate of $38.19 billion. Adjusted earnings per share (ADS) showed a significant increase, reported at $2.93, which exceeded the anticipated $2.66. The company's adjusted net income saw a 7% rise from the previous year, amounting to $7 billion.

Several Alibaba business segments contributed to this strong performance. Revenue from the Taobao and Tmall Group saw a growth of 5%, recording $18.64 billion, while the Alibaba International Digital Commerce Group experienced a substantial 32% increase, reporting $5.17 billion in revenue. The cloud computing arm, Cloud Intelligence Group, also performed well with a 13% revenue growth, totaling $4.35 billion.

In terms of other segments, Local Services Group revenue grew 12% to $2.33 billion, and Digital Media and Entertainment Group reported an 8% rise in revenue amounting to $745 million. However, Cainiao Smart Logistics Network Limited saw a slight revenue decrease of 1% to $3.87 billion.

Alibaba's strategic focus on international markets is also evident in its operations as its international commerce retail business revenue jumped 36% year-on-year, reaching $4.32 billion. The company has also launched its first cloud region in Mexico, signaling its intentions for global expansion.

Despite a 31% decrease in free cash flow, which fell to $5.35 billion, the company is holding a strong cash position with $83.58 billion in cash and equivalents. This financial health supports the planned investments in artificial intelligence and cloud technology, with an aim to make the international e-commerce unit profitable next fiscal year.

Alibaba's partnership with Apple Inc. to co-develop AI features within iPhones for the Chinese market further highlights its commitment to technological advancements and maintaining a competitive edge.