Alibaba’s Stock Soars as AI and Taobao Flash Delivery Drive Growth

On August 29, 2025, Alibaba’s stock surged by 12.48% at the opening of the U.S. stock market, boosting its market value by $35.57 billion (approximately ¥253.68 billion). This impressive rally reflects growing investor confidence in Alibaba’s strategic investments in AI and its innovative Taobao Flash Delivery service. Let’s explore how these developments are fueling Alibaba’s growth and reshaping its position in the global market.

Financial Highlights: A Mixed but Promising Quarter

For the first quarter of fiscal year 2026 (ending June 30, 2025), Alibaba reported revenue of ¥247.65 billion, a 2% year-over-year increase. Excluding disposed businesses like Gaoxin Retail and Yintai, revenue growth was a robust 10%. The company’s adjusted EBITDA reached ¥45.74 billion, while net income soared 76% to ¥42.38 billion. However, non-GAAP net income fell 18% to ¥33.51 billion compared to ¥40.69 billion in the same quarter last year.

On August 28, 2025, Alibaba repurchased 667,200 shares for approximately $9.99 million on the New York Stock Exchange, signaling confidence in its long-term value.

Taobao Flash Delivery: A Game-Changer for E-Commerce

Launched in late April 2025, Taobao Flash Delivery has transformed Alibaba’s e-commerce ecosystem by offering instant delivery for categories like food, daily essentials, electronics, and apparel. This service has strengthened Taobao’s dominance in China’s e-commerce market, driving a 25% year-over-year increase in monthly active users in the first three weeks of August 2025.

Alibaba’s e-commerce group CEO, Jiang Fan, revealed that Taobao Flash Delivery achieved a peak of 1.2 billion daily orders, with an average of 80 million daily orders in August. The service now boasts 300 million monthly active users, a 300% increase since April, and 2 million daily active delivery riders, triple the number from April. Jiang projects that Flash Delivery and instant retail will contribute ¥1 trillion in new transaction volume over the next three years, with millions of offline brands and stores joining the platform.

This rapid growth underscores Alibaba’s success in capturing consumer demand for instant retail, positioning Taobao as a leader in this fast-evolving sector.

AI-Powered Growth: Cloud Division Shines

Alibaba’s Cloud Intelligence Group reported ¥33.40 billion ($4.66 billion) in revenue for the quarter, a 26% year-over-year increase, driven primarily by public cloud services and surging demand for AI-related products. Remarkably, AI product revenue has achieved triple-digit growth for eight consecutive quarters, fueled by rising demand for computing, storage, and other cloud services to support AI applications.

CEO Wu Yongming highlighted that Alibaba invested ¥38.6 billion in AI and cloud infrastructure this quarter alone, with over ¥100 billion invested in AI infrastructure and product development over the past four quarters. In February 2025, Alibaba announced a ¥380 billion investment plan over three years to bolster its cloud and AI hardware infrastructure. These investments are paying off, as Wu noted that AI-driven growth is accelerating across both consumer and business applications, reinforcing Alibaba’s leadership in the AI cloud market.

Looking Ahead: Alibaba’s Vision for the Future

Alibaba’s strategic focus on AI and instant retail is paving a clear path for sustained growth. The company’s ability to exceed its initial goals for Taobao Flash Delivery demonstrates its agility in meeting consumer needs, while its massive AI investments are positioning it as a global leader in cloud and AI technology. As Wu Yongming stated, “AI is driving Alibaba’s high-speed growth trajectory more clearly than ever.”

However, investors should remain cautious, as the disclaimer in the original report notes that this information is for reference only and does not constitute investment advice. With Alibaba’s stock soaring and its innovations gaining traction, the company is poised to shape the future of e-commerce and AI-driven technology.