US Stock Market Move | Alibaba Group Holding Limited Sponsored ADR (BABA.US) rose more than 8%, with Alibaba Cloud revenue growth soaring to 45%.

On Wednesday, Alibaba Group Holding Limited Sponsored ADR (BABA.US) surged over 8% to $106.52. On the news front, the outlook for Alibaba Group Holding Limited Sponsored ADR's first quarter of fiscal year 2027 shows that the year-over-year growth rate of Alibaba Cloud revenue has accelerated to around 45%, significantly higher than market expectations. At the same time, the EBITA profit margin for Alibaba Cloud has improved to the low double-digit range, achieving synchronized growth in scale and profitability. According to market outlook data, the year-over-year growth rate of Alibaba Cloud revenue in the first quarter of fiscal year 2027 is expected to reach 45%, up from 38% in the previous quarter, an increase of about 7 percentage points, marking the highest single-quarter growth rate in nearly 5 years. In the past 5 quarters, the growth rate of Alibaba Cloud revenue has climbed from 18% to 26%, 34%, 36%, 38%, and is expected to reach 45% this time. The profit margin is expected to rise to 11%-12%, up from 9% in the previous quarter. Additionally, the management has once again confirmed the long-term profit margin target of 20%. Morgan Stanley previously stated that the annual revenue of Alibaba's MaaS business is expected to increase from 8 billion RMB to over 30 billion RMB by the end of the year, and the EBITA profit margin of the cloud business is expected to reach double digits within the next two quarters, establishing Alibaba Cloud as the largest AI and cloud franchising operator in China.