Alibaba Cloud Looks To Tap New Customers In "Sunrise" Industries As Big Internet Companies Reach Market Saturation - Alibaba Gr Hldgs (NYSE:BABA)

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Alibaba Group Holding Limited's (NYSE:BABA) cloud operation thinks it's reached market saturation among China's big internet companies, the Register reports.
However, Alibaba Cloud saw a new wave of demand from industrial outfits and looked to chase new customers in "sunrise" industries.
Alibaba Cloud also aims to build proprietary technology capabilities "in key areas such as computing, big data and artificial intelligence" to create a unique selling proposition and found it crucial to improve its security.
Alibaba Cloud's custom SmartNIC will likely become the core of its next generation of cloud computing infrastructure.
Alibaba's Q1 saw Alibaba Cloud win $3.57 billion in revenue, of which customers spent $2.64 million other than Alibaba's various business units.
Alibaba's Q1 revenue grew 10% year-over-year as Alibaba's business growth was flat to $30.7 billion, primarily due to China's COVID resurgence.
Alibaba highlighted that "non-internet industries contributed 53% of Cloud revenue, up more than five percentage points compared to the same quarter last year."
Alibaba also disclosed an "internet industry deceleration" that restricted the growth of the Alibaba cloud.
Earlier this year, Alibaba's cloud unit disclosed intense organizational restructuring involving key heads.
Mizuho recently recommended investors rotate from the U.S. to China Internet names like Alibaba, citing stimulus policies.
Price Action: BABA shares traded lower by 1.54% at $91.13 on the last check Monday.
Photo by Fooksou Lamimo via Wikimedia

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