Alibaba (BABA) Rockets by 13% After Stellar Earnings

We recently published 10 Stocks Skyrocket While Wall Street Sinks; 5 Quietly Hit New Record Highs. Alibaba Group Holding Limited (NYSE:BABA) is one of the top performers on Friday.

Alibaba snapped a three-day losing streak on Friday, jumping 12.95 percent to end at $135.05 apiece after posting a stellar earnings performance in the first quarter of fiscal year 2026.

In its updated report, Alibaba Group Holding Limited (NYSE:BABA) said net income attributable to shareholders surged by 67 percent to 40.65 billion yuan from 24.39 billion yuan registered in the same period last year, primarily driven by mark-to-market changes from equity investments and gain from the disposal of local consumer service business of Trendyol, partly offset by the decrease in income from operations.

Revenues grew by 1.89 percent to 247.6 billion yuan from 243 billion yuan year-on-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 10 percent year-on-year.

“Our strategic focus on consumption and AI + Cloud delivered strong growth.

Our decisive investment in the quick commerce business achieved key milestones as we won consumer mindshare,” said Alibaba Group Holding Limited (NYSE:BABA) CEO Eddie Wu.

“Looking ahead, we remain committed to investing in our two strategic pillars of consumption and AI + Cloud to capture historic opportunities and drive long-term growth,” he added.

While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.