The Hangzhou-based firm operates some of China's most widely used online shopping platforms, making its performance a bellwether for consumer sentiment.
The company is enjoying a comeback with its share price soaring so far this year and legendary co-founder Jack Ma being pictured with President Xi Jinping after spending several years out of the public eye.
It said Thursday that revenue rose eight percent to 280 billion yuan (38.4 billion) in the three months through December, exceeding the 277 billion yuan estimated by a Bloomberg pool of analysts.
Net income attributable to ordinary shareholders jumped to nearly 49 billion yuan, a rise of 239 percent, the company said.
"This quarter's results demonstrated substantial progress in our 'user first, AI-driven' strategies and the re-accelerated growth of our core businesses," Alibaba CEO Eddie Wu said.
"We will continue to execute against our strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth," he added.
Alibaba has benefitted from a strong rally among Chinese technology stocks and has seen its shares soar over 40 percent so far this year.
The strong upturn has owed much to investor optimism over Chinese breakthroughs in artificial intelligence, with insurgent firm DeepSeek causing a global stir last month with an AI chatbot that seemingly matches US peers at a fraction of the cost.
- Stimulate spending -
Thursday's results came as China battles slowing economic growth, with weak consumption adding to high youth unemployment and a debt crisis in the crucial property sector.
Beijing has unveiled a string of measures designed to stimulate spending, from rate cuts to easing restrictions on home purchases.
In a rare meeting with business leaders this week, Xi acknowledged the challenges faced by the private sector but called them "temporary rather than long-term, and surmountable rather than unsolvable".
Xi lauded China's socialist market system and called on entrepreneurs to "unify" around the ruling Communist Party's policies, urging them to "see the prospects, see the light, and see the future", state media reported.
A surprise participant at the meeting was Ma, the Alibaba co-founder who remains one of China's most recognisable business luminaries but has kept a low profile in recent years.
The charismatic billionaire once spoke boldly about the shortcomings of China's financial and regulatory systems but has held his tongue in recent years following Xi's sweeping crackdown on the tech sector and the scuttling of Alibaba affiliate Ant Group's IPO.
Ma is no longer an executive at Alibaba but is believed to retain a significant shareholding in the company.
State media showed him applauding as Xi entered the meeting hall and shaking hands with the Chinese leader, but did not say whether he addressed the conference and published no remarks from him.
Asian markets advance as Alibaba fuels Hong Kong tech rally
Hong Kong (AFP) Feb 21, 2025 -
Asian markets rose Friday, with Hong Kong leading the way thanks to a surge in tech stocks led by ecommerce titan Alibaba.
The gains put the region on course to end a positive week on a strong note and came as traders weigh the economic outlook in light of Donald Trump's tariffs drive and geopolitical machinations.
The yen pulled back a day after rallying past the 150-per-dollar mark following a warning on rising bond yields by Japan's finance minister saw a rethink over bets on how many interest rate hikes the central bank will announce this year.
Traders have been dealing with a series of Trump headlines this week that have made them consider their investment strategies, with his mulling of more tariffs adding to inflation worries.
Minutes from the Federal Reserve's January policy meeting, released this week, showed officials concerned that the president's trade wars and pledges to cut taxes, regulations and immigration will force them to pause their rate cutting for now.
The first high-level discussions between Washington and Moscow since Russia invaded Ukraine -- without the presence of Europe or Kyiv -- saw the two appoint teams to negotiate an end to the war.
Disappointing earnings from retail titan Walmart sparked worries about US consumer activity and the impact on the world's top economy, and weighed on Wall Street with all three main indexes ending in negative territory.
But Asia fared, with Hong Kong piling on more four percent to hit a three-year high.
The rally was fuelled by tech firms, and particularly Alibaba, which rocketed more than 14 percent a day after it released forecast-busting earnings figures. The firm is now up nearly 70 percent since the turn of the year, and the Hang Seng Index more than 17 percent.
The Hang Seng tech index surged more than six percent, with other household names making big moves higher.
Tencent added more than six percent, JD.com and XD Inc gained more than five percent, and Meituan jumped 3.8 percent.
China's tech sector has been on a roll this year, and has been given an extra boost since startup DeepSeek unveiled a chatbot that upended the global AI sector.
Elsewhere in Asia, Tokyo, Shanghai, Singapore, Seoul, Taipei, Manila, Bangkok and Jakarta also rose, along with Frankfurt and Paris.
But London fell at the open.
The yen retreated after Japanese Finance Minister Katsunobu Kato said Friday that rising government bond yields -- which are at their highest since 1999 -- could weigh on economic growth.
The yen was back above 150 to the dollar, having strengthened to below that figure for the first time since December.
That dented expectations the Bank of Japan will announce a series of rate hikes this year, even after data Friday showed Japanese core inflation hit a 19-month high of 3.2 percent in January.
"Kato's remarks had traders rethinking whether the BoJ would really push ahead aggressively or if they might be nudged into a more measured, summer one-and-done approach in 2025," said SPI Asset Management's Stephen Innes.
"Most economists expect the next BoJ rate hike to land in the summer, but the market isn't entirely convinced.
"Stronger-than-expected fourth-quarter GDP growth figures, notably hawkish remarks from BoJ board member Hajime Takata, and a hotter CPI have amplified speculation that the tightening cycle could move faster than anticipated."
Rania Gule, a senior market analyst at XS.com, added: "Kato's remarks brought things back into focus, confirming that the central bank is not completely independent from the Ministry of Finance, which is grappling with unprecedented levels of debt to GDP."
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