Alibaba has reported a remarkable 239% year-over-year jump in net profit for the final quarter of 2024.
The Chinese tech giant’s growth was driven by significant advancements in its cloud business, which saw a 13% increase in revenue, and its strong expansion in artificial intelligence (AI). CEO Eddie Wu highlighted the company’s commitment to AI development, with plans to invest more in the next three years than it has in the past decade. Alibaba’s shares surged, reflecting positive investor sentiment, particularly in the wake of the company’s strong performance and its push to lead in AI.
The company’s revenue for the quarter reached RMB 280 billion ($38 billion), marking an 8% rise from the previous year. Alibaba’s international e-commerce business also saw significant growth, with a 32% increase in sales, contributing to its overall revenue performance. Wu emphasized that Alibaba’s primary goal is to pursue artificial general intelligence (AGI), which aims to match or surpass human-level intelligence. This focus on AI is seen as a long-term strategy to ensure continued growth and market leadership.
Meanwhile, Amazon achieved a significant milestone by surpassing Walmart in quarterly revenue for the first time ever. Amazon’s quarterly revenue reached $187.8 billion, edging out Walmart’s $180.5 billion for the period. Amazon’s retail division remains its primary revenue driver, but its cloud services also contribute significantly to its financial results. This shift indicates Amazon’s growing influence across various sectors of the economy, marking a key moment in its expansion beyond e-commerce.
While Walmart remains the top revenue generator on an annual basis, Amazon’s recent achievement highlights its increasing role as a technology and retail powerhouse. As of now, Walmart continues to dominate in terms of global revenue generation, but Amazon’s ability to outperform in a single quarter signals a shift in the competitive landscape.
With input from CNBC, Forbes, the Financial Times.
