Chinese technology giant Alibaba reported an impressive 239% increase in net profit for the last quarter of 2024. CEO Eddie Wu credited this remarkable growth to the expansion of the cloud division and a significant boost in artificial intelligence initiatives over the past six quarters, while also noting that rising retail sales contributed to the success.

Similar to Alibaba, Amazon operates as both a retailer and a cloud services provider. While its retail segment remains the primary source of income, its cloud computing operations are also a significant revenue driver. In late 2024, Amazon’s revenue for the quarter exceeded Walmart’s for the first time, highlighting its increasing influence across various sectors of the economy.

Nevertheless, Walmart is projected to retain the title of the world’s leading annual revenue generator—for now.

U.S. Markets Down from Historic Levels
U.S. markets fell on Thursday. The S&P 500 declined by 0.43%, retreating from recent peaks and concluding the week in negative territory. Meanwhile, the Dow Jones Industrial Average fell by 1.01%, and the Nasdaq Composite decreased by 0.47%. Stocks in the Asia-Pacific region rebounded on Friday; for example, Hong Kong’s Hang Seng Index surged over 3.4%, reaching its highest point since February 2022, thanks to Alibaba’s stock performance. Japan’s Nikkei 225 edged up approximately 0.2% amidst ongoing consumer price increases.

Inflation Persists in Japan
Japan’s inflation rate hit 4% year-on-year in January, marking its highest level since January 2023. Core inflation, excluding fresh food prices, reached 3.2%, surpassing economists’ expectations of 3.1%, as reported in a Reuters poll. This marks the highest rate since June 2023, with overall inflation remaining above the Bank of Japan’s 2% goal for 34 consecutive months.

Alibaba’s Stock Soars Following Cloud Gains
Alibaba shares surged by 8.1% in the U.S. on Thursday and spiked as much as 12% in Hong Kong on Friday. The tech giant reported a net income of 48.945 billion yuan ($6.72 billion) for the December quarter, a dramatic 239% increase compared to the previous year. Alibaba’s revenue exceeded expectations, driven by a 13% year-on-year sales increase in its Cloud Intelligence Group during the quarter. Additionally, GameStop CEO Ryan Cohen reportedly increased his personal investment in Alibaba to approximately $1 billion, according to The Wall Street Journal.

Amazon Overtakes Walmart in Quarterly Revenue
Amazon has surpassed Walmart for the first time in quarterly revenue. Amazon reported revenues of $187.8 billion for Q4, exceeding Walmart’s $180.5 billion announced on Thursday. Since 2012, Walmart has maintained its position as the top revenue generator each quarter following its ascent past oil giant Exxon Mobil.

KKR’s Bid for Thames Water
Private equity firm KKR is proposing around £4 billion ($5 billion) for the troubled Thames Water utility in the UK, according to sources close to the matter. The utility company faces escalating debt and warned it may exhaust its cash reserves by March 24. KKR’s proposal involves a management buyout that will not necessitate asset sales or a division of the utility, as reported by insiders.

Analyzing Thursday’s Market Decline
As the largest retailer and revenue generator in the U.S., Walmart acts as a key indicator of consumer health. Consequently, investors reacted to the company’s forecast of slower profit growth this fiscal year by selling off shares. Analysts have shared insights on the reasons behind Thursday’s market dip.

After years of hostility, Russia is changing its stance towards the U.S.

Since its invasion of Ukraine three years ago, Russia has dedicated considerable efforts to vilifying the U.S. and disparaging its leadership. However, with a new, more accommodating administration under U.S. President Donald Trump—initiating preliminary discussions to resolve the Ukraine conflict—Russia appears to be softening its previously adversarial approach in light of potential economic and geopolitical thawing.

As tensions between Trump and Ukraine’s President Volodymyr Zelenskyy flared this week—Trump labeling Zelenskyy a “dictator”—Putin commended Trump for his restraint amidst what he described as “hysteria” from European leaders upset about being excluded from negotiations regarding Ukraine’s future.