Alibaba had to wow investors with its earnings report Friday—and came close, but not necessarily how it thought it would. Shares rose after the Chinese online retailer reported an AI boost to its cloud business which came at the right time to help it overcome a slump in consumer spending.

Alibaba gained despite fiscal Q2 sales coming in lower than expected as earnings beat estimates with AI growth.

Alibaba Group Holding Limited's strong Q2 earnings beat expectations, with solid growth in the cloud segment. Click for an updated look at BABA stock prospects.

Alibaba stock rose after the Chinese online retailer posted fiscal second-quarter earnings that beat analysts’ estimates but revenue that missed forecasts. Adjusted earnings per American-listed share were 15.