https://www.digiteex.com Digitex Solutions Thu, 20 Feb 2025 13:49:48 +0000 en-US hourly 1 224764844 https://www.digiteex.com/revenue-and-eps-beat-eyes-global-e-commerce-profitability-in-fy25-increase-investments-in-ai/ https://www.digiteex.com/revenue-and-eps-beat-eyes-global-e-commerce-profitability-in-fy25-increase-investments-in-ai/#respond Thu, 20 Feb 2025 13:49:46 +0000 https://www.digiteex.com/revenue-and-eps-beat-eyes-global-e-commerce-profitability-in-fy25-increase-investments-in-ai/ Alibaba Q3 Earnings: Revenue And EPS Beat, Eyes Global E-Commerce Profitability In FY25, Increase Investments In AI Alibaba Group Holding Limited (NYSE:BABA) stock is trading higher Thursday after the company’s fiscal third-quarter report. The Jack Ma co-founded e-commerce giant reported fiscal third-quarter 2024 revenue growth of 8% year-on-year to $38.38 billion, beating the analyst consensus estimate of $38.19 billion. Adjusted earnings per ADS of $2.93 beat the analyst consensus estimate of $2.66. Adjusted net income rose 7% Y/Y to $7 billion. Also Read: Muddy Waters’ Carson Block Warns Against Chinese Stocks Despite Recent Market Surge: Report Segments: Revenue from Taobao and Tmall Group grew by 5% year over year to $18.64 billion. Revenue from Alibaba International Digital Commerce Group increased by 32% year over year to $5.17 billion, driven by the growth of cross-border businesses. Local Services Group revenue grew by 12% year over year to $2.33 billion, driven by the order growth of Amap and Ele.me and revenue growth from marketing services. Cainiao Smart Logistics Network Limited’s revenue decreased 1% year over year to $3.87 billion due to ongoing restructurings with its e-commerce businesses taking on specific logistics platform roles. Cloud Intelligence Group revenue grew by 13% Y/Y to $4.35 billion. Digital Media and Entertainment Group rose 8% Y/Y to $745 million. All other revenue grew by 13% Y/Y at $7.28 billion. In the Taobao and Tmall Group, customer management revenue grew 9% year over year due to the growth in online GMV and improvement in take rate. Revenue from China’s commerce retail business grew 5% year over year to $17.74 billion, while direct sales and other revenue declined by 9% year over year to $3.94 billion, primarily attributable to our planned reduction of certain direct sales businesses. Revenue from China’s commerce wholesale business grew by 24% year over year to $901 million due to the increase in revenue from value-added services provided to paying members. Alibaba International Digital Commerce Group: International commerce retail business revenue grew by 36% year over year to $4.32 billion, primarily driven by the increase in revenue contributed by AliExpress’ Choice and Trendyol. International commerce wholesale business revenue grew by 18% Y/Y to $850 million. Cloud Intelligence Group: Overall revenue, excluding Alibaba-consolidated subsidiaries, increased by 11% Y/Y, which was mainly driven by the double-digit revenue growth of public cloud products, including AI-related products. Recently, Alibaba launched its first cloud region in Mexico. As of December 31, 2024, Alibaba held $83.58 billion in cash and equivalents and generated an operating cash flow of $9.72 billion, up 10% year over year. Story Continues During the quarter, it generated a free cash flow of $5.35 billion, down 31% year over year. This was mainly due to the increase in expenditure related to its investments in cloud infrastructure. Outlook: Alibaba said during the conference call that it expects its international e-commerce unit to turn profitable next fiscal year and looks to invest more in Cloud and AI over the next three years than in the past decade. Alibaba stock surged 72% in the last 12 months, buoyed by China’s stimulus measures to drive the economy and as the e-commerce juggernaut’s affordable AI models gained traction. Recently, Apple Inc. (NASDAQ:AAPL) tapped Alibaba to co-develop and integrate AI features into its iPhones for the Chinese market. Price Action: BABA shares traded higher by 10.50% at $139.05 premarket at the last check on Friday. Also Read: Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Alibaba Q3 Earnings: Revenue And EPS Beat, Eyes Global E-Commerce Profitability In FY25, Increase Investments In AI originally appeared on Benzinga.com © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


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]]> https://www.digiteex.com/revenue-and-eps-beat-eyes-global-e-commerce-profitability-in-fy25-increase-investments-in-ai/feed/ 0 4929 https://www.digiteex.com/meta-earnings-top-expectations-as-company-forecasts-higher-costs-ai-investments-in-year-ahead/ https://www.digiteex.com/meta-earnings-top-expectations-as-company-forecasts-higher-costs-ai-investments-in-year-ahead/#respond Wed, 29 Jan 2025 23:26:20 +0000 https://www.digiteex.com/meta-earnings-top-expectations-as-company-forecasts-higher-costs-ai-investments-in-year-ahead/ Meta (META) reported fourth quarter earnings Wednesday that beat expectations while the company forecasted a slowdown in revenue growth in the current quarter and said expenses in 2025 would grow faster than last year. Shares of the company initially fell 4% in after hours trading following the results, but were up about 1% near 5:00 p.m. ET. The social media giant reported fourth quarter earnings per share of $8.02 on revenue of $48.4 billion, higher than expectations for EPS to reach $6.75 on revenue of $46.9 billion, according to Bloomberg estimates. For the full-year, the company’s net income totaled $62.4 billion, up 59% from the $39.1 billion seen last year. In the first quarter, however, the company sees revenue coming in between $39.5 billion-$41.8 billion, reflecting 8%-15% growth from the prior year period. In the fourth quarter, revenue 21% over last year. For the full-year 2024, revenue totaled $164.5 billion, up 22% over last year. Meta also declined to offer a full-year revenue forecast, saying “we expect the investments we are making in our core business this year will give us an opportunity to continue delivering strong revenue growth throughout 2025.” Wednesday’s report comes less than a week after CEO Mark Zuckerberg announced Meta plans to spend between $60 billion and $65 billion on AI infrastructure projects this year, including the construction of a data center that the executive says is so large its footprint would cover a large chunk of Manhattan. The company had previously projected $38 billion to $40 billion in capital expenditures in 2024, up from prior estimates of $37 billion to $40 billion. In its release on Wednesday, CFO Susan Li said expenses for 2025 should fall in a range of $114 billion-$119 billion, up from $95.1 billion in 2024. “We expect the single largest driver of expense growth in 2025 to be infrastructure costs, driven by higher operating expenses and depreciation,” Li said. “We expect employee compensation to be the second-largest factor as we add technical talent in the priority areas of infrastructure, monetization, Reality Labs, generative artificial intelligence (AI), as well as regulation and compliance.” “We continue to make good progress on AI, glasses, and the future of social media,” CEO Mark Zuckerberg said in a press release. “I’m excited to see these efforts scale further in 2025.” Ahead of Meta’s report, which was released about 30 minutes later than is typical for the company, The Wall Street Journal reported the company had also reached a $25 million settlement with President Trump over a lawsuit brought against the company regarding its decision to suspend the president from its platforms following the Jan. 6 insurrection in 2021. Story Continues


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