September 30, 2020 | technology | No Comments
(Bloomberg) — Alibaba Group Holding Ltd. foresees its cloud services arm turning profitable for the first time this year, a milestone for the decade-old business that underscores how Asia’s largest corporation expects a return to pre-pandemic levels as China’s economy rebounds.
Alibaba’s shares rose as much as 4% in Hong Kong, their biggest intraday gain in over a month. Its internet computing business is growing roughly 60% at an annual revenue run rate of about $7 billion, Chief Financial Officer Maggie Wu told investors at an annual company conference. The unit should turn profitable in the year ending March, she said.
Cainiao, the logistics service Alibaba folded fully into its broader empire in 2017, should generate positive cash-flow on an operating basis over the same period, she added.
China’s most valuable corporation has invested billions in hosting computing for corporations over the cloud, while building a nationwide logistics