Alibaba revenue tops estimates with strong instant retail, AI push

Chinese e-commerce giant Alibaba, beat analysts' estimates for quarterly revenue on Tuesday as investments in one-hour delivery helped drive more users to its shopping apps, while its cloud division reported strong growth, reports Reuters.

US-listed shares of the company rose 4 per cent in premarket trading. The company reported revenue of 247.80 billion yuan ($34.97 billion) in the second quarter, compared with estimates of 242.65 billion yuan, according to data compiled by LSEG.

Alibaba's results come against the backdrop of a costly battle in China's "instant retail" sector - which Alibaba calls "quick commerce" - where major players are pouring billions into one-hour delivery services to capture market share.

At the same time Alibaba has been investing heavily in artificial intelligence, emerging as one of China's leaders in the field.

"We have entered into an investment phase to build long-term strategic value in AI technologies and infrastructure, and a consumption platform integrating daily life services and e-commerce," said Alibaba Group CEO Eddie Wu.