Alibaba reported June-quarter revenue of 269 billion yuan (US$39.9 billion) on August 20, up 9% year on year.

Demand for AI services lifted its cloud business, while an extended 618 shopping festival supported its ecommerce unit.

The Chinese tech company said revenue from AI cloud and compute services rose 45% to 48.4 billion yuan (US$7.2 billion). Capital expenditure rose 75% to 67.7 billion yuan (US$10.1 billion) as Alibaba invested in AI infrastructure.

The result slightly beat analysts’ average estimate of 268.9 billion yuan (US$39.9 billion), compiled by LSEG.

The 618 promotion remains one of China’s biggest annual online sales events, even as sales growth has slowed amid weaker consumer spending.

Cloud is a growth driver for Alibaba, though it remains smaller than the company’s core commerce business.

🔗 Source: Reuters

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