BABA-W (09988) opened nearly 15% higher and as of press time, the stock rose 14.95% to HK$133, with trading volume reaching HK$2.518 billion.

On the news front, Alibaba released its first quarter fiscal year 2026 financial results on August 29. The quarter achieved revenue of RMB 247.652 billion, representing a 10% year-over-year growth excluding the impact of divested businesses, while net profit reached RMB 42.382 billion, up 76% year-over-year.

Notably, Alibaba's capital expenditure investment in AI+Cloud reached RMB 38.6 billion this quarter, representing a 220% year-over-year increase and 57.1% quarter-over-quarter growth, setting a new single-quarter historical high. Alibaba Cloud revenue grew 26% year-over-year, marking the highest growth rate in three years, with AI-related product revenue achieving triple-digit year-over-year growth for eight consecutive quarters.

The company stated that while chip supply policies may change from time to time, the company remains prepared with response plans. The company is confident in continuing to implement its three-year RMB 380 billion investment plan in AI and cloud.

Additionally, the earnings report mentioned that instant retail quickly achieved phased results and won consumer mindshare, with Taobao app's monthly active consumers growing 25% year-over-year in the first three weeks of August. During the quarter, the group's instant retail business revenue was RMB 14.784 billion (US$2.064 billion), compared to RMB 13.196 billion in the same period of 2024, representing a 12% increase mainly driven by order volume growth from Taobao Flash Purchase launched at the end of April 2025.

Alibaba Group CEO Eddie Wu stated: "Looking ahead, we will continue to make determined investments around our two strategic focuses of mass consumption and AI+Cloud, seize historical opportunities, and achieve long-term growth."