Alibaba Group Holding Limited is working to enhance its logistics and autonomous-driving capabilities while continuing to capitalize on growth in its cloud and AI sectors. The company has announced a merger between its autonomous-driving logistics unit and the Chinese robovan company Zelos Technology, a transaction that will value the combined entity at approximately $2 billion. Through this merger, Alibaba’s Cainiao division will acquire a stake in Zelos, integrating its unmanned-vehicle operations but allowing Cainiao Robovan to function as an independent brand. A Cainiao executive will join Zelos’s board to ensure ongoing collaboration.
The company’s stock has seen a remarkable 81% increase over the past year, buoyed by strong performance in both the Cloud and AI sectors, alongside recovery in its core e-commerce business. In its fiscal second-quarter results, Alibaba reported a revenue of $34.81 billion, marking a 5% increase compared to the previous year and exceeding analysts’ expectations. On a comparable basis, this revenue surge would equate to a 15% increase when excluding divested businesses. Adjusted earnings reached 61 cents per ADS, surpassing the estimated 49 cents. However, increased expenditures affected profitability, with adjusted net income decreasing by 72% to $1.45 billion, and adjusted EBITA dropping 78% to $1.27 billion.
The growth trajectory includes a 16% increase in domestic e-commerce revenue, bolstered by swift onboarding of Tmall brands and enhanced quick-commerce demand. The Cloud Intelligence Group reported a 34% revenue increase, prompted by heightened public cloud demand and accelerating AI integration. Analysts remain optimistic about Alibaba’s potential in AI, citing rapid technological advancements within the sector.
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