The Alibaba office building on Feb. 18, 2025, in Nanjing, Jiangsu province of China.
Fang Dongxu | Visual China Group | Getty Images
In a period marked by high stakes, Chinese tech giant Alibaba has reported a remarkable 239% year-over-year jump in net profit for the fourth quarter of 2024. This significant boost can be attributed to the robust growth in their cloud computing services and strong expansion in artificial intelligence, both of which have seen triple-digit gains over the past six months. Furthermore, improved retail sales contributed to this extraordinary financial outcome.
Comparing Giants: Alibaba, Amazon, and Walmart
Alibaba’s success mirrors that of Amazon, another tech behemoth known for its dual role as a global retailer and a leading cloud services provider. Amazon reported that its core retail operations continued to be its primary revenue engine, but cloud services are increasingly becoming a critical revenue stream. In a notable milestone, Amazon surpassed Walmart in quarterly revenue for the first time in late 2024. This shift signals Amazon’s expansion into various sectors of the economy, solidifying its position as a formidable competitor.
Despite the significant achievement, Walmart retains its title as the world’s largest corporation by annual revenue for now. Walmart’s consistent performance in retail, coupled with its growing e-commerce segment, will likely keep it at the top for the foreseeable future.
U.S. Markets: A Mixed Picture
The U.S. stock market experienced a pullback on Thursday, with the S&P 500
sliding 0.43%
and the Dow Jones Industrial Average
losing 1.01%
. The Nasdaq Composite
dropped 0.47%
as well. Amazon’s quarterly earnings, coupled with robust results from Alibaba, provided some optimism in the market, but concerns over retail performance dragged the broader market downwards.
Asia-Pacific Markets: Strength Despite Global Headwinds
In contrast to the U.S. market’s slow retreat, Asian stock markets demonstrated resilience. Hong Kong’s Hang Seng Index
rose by more than 3.4%
on Friday, reaching its highest level since February 2022. This surge can be largely attributed to阿里巴巴’s strong performance. Meanwhile, Japan’s Nikkei 225
edged up 0.2%
, reflecting healthy economic indicators, including sustained consumer price growth.
Japan: Sustained Inflation
Japan’s inflation rate rose to 4% year-on-year in January, its highest in two years. Core inflation, which excludes volatile food prices, reached 3.2%, surpassing economists’ projections of 3.1%. This significant increase represents the highest core inflation rate since June 2023, marking 34 consecutive months where headline inflation remained above the Bank of Japan’s 2% target.
Alibaba’s Share Performance
Following its impressive earnings report, Alibaba’s stock showed substantial gains, climbing 8.1% on Thursday in the U.S. market and reaching as high as 12% in Hong Kong on Friday. Alibaba’s robust profits stemmed from a net income of 48.945 billion yuan ($6.72 billion), representing a 239% surge from the previous year. The company’s Cloud Intelligence Group witnessed a 13% year-over-year increase in sales, contributing to its overall financial success.
Adding to Alibaba’s momentum, game retailer GameStop’s CEO, Ryan Cohen, increased his personal stake in Alibaba to around $1 billion, further highlighting investor confidence in the Chinese tech giant.
Amazon’s Leap Over Walmart
Amazon’s milestone achievement of surpassing Walmart in quarterly revenue marks a significant shift in the retail landscape. Amazon reported fourth-quarter revenues of $187.8 billion, narrowly edging out Walmart’s $180.5 billion. This development signals Amazon’s growing influence in both traditional retail and cloud services, positioning it as a key player in the global economy.
Thames Water: In Need of Rescue
A struggling U.K. utility, Thames Water, faces financial challenges with debt mounting and a warning of imminent cash depletion by March 24. Private equity firm KKR has stepped in with a potential £4 billion ($5 billion) management-buyout offer, aiming to stabilize the company without dismantling its core operations.
Market Sentiment: Walmart’s Profit Forecast
The market was influenced by Walmart’s forecast of slowing profit growth for the fiscal year. As the largest retailer and revenue generator in the U.S., Walmart’s financial health often serves as a barometer for consumer spending. When the company hinted at reduced profit expectations, it triggered a market sell-off, underscoring the delicate balance of investor sentiment and economic indicators.
And Finally… Relations Between Russia and the U.S.
Donald Trump (L) and Russia’s Vladimir Putin arrive to attend a joint press conference after a meeting at the Presidential Palace in Helsinki, on July 16, 2018.
Yuri Kadobnov | Afp | Getty Images
Moscow’s attitudes towards the United States have undergone a dramatic shift in the last three years. Following Russia’s invasion of Ukraine, the Russian government spent considerable effort maligning the U.S. and isolating the country economically and diplomatically. However, with the onset of a more favorable relationship under President Donald Trump and the potential to ease tensions in Ukraine, Russia is reconsidering its adversarial stance towards the U.S.
Recent developments, including tensions between Trump and Ukrainian President Volodymyr Zelenskyy, have further complicated the geopolitical landscape. Despite these challenges, Putin has praised Trump for exercising restraint and maintaining a level of calm amid what he views as “hysteria” from European leaders left out of U.S.-led negotiations on Ukraine.
As the geopolitical landscape continues to evolve, the relationship between Russia and the U.S. remains a critical factor influencing global economic relations. The potential for normalized ties or continued confrontation could have far-reaching implications for economic growth, trade policies, and international relations.
Conclusion: The Future of Tech and Retail
The landscape of tech and retail is undergoing significant transformation, driven by dynamic shifts in consumer behavior and technological advancements. Companies like Alibaba and Amazon are at the forefront of this change, leveraging cloud computing and artificial intelligence to create innovative solutions and capture expanding market opportunities. As these giants continue to reshape the global economy, their success serves as an inspiration and a challenge for other businesses in the sector.
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