Alibaba reported a mixed quarter with sharply lower profits and negative free cash flow due to heavy capital expenditures, which rose 75% to RMB67.68 billion. However, AI Cloud and Compute Services revenue surged 45% year-on-year, with AI product revenue growing triple digits for the twelfth consecutive quarter and adjusted EBITA up 133%. Management expects AI-related capital spending to break even within three years, supported by a still-profitable commerce business. Despite near-term earnings pressure and China-related risks, accelerating AI monetization and cloud growth make Alibaba an attractive long-term investment opportunity.
Alibaba issued $10.2 billion in new shares, causing a market sell-off that overestimated the actual dilution impact, which is only about 0.13% on its ADR price. The company’s cloud business is growing rapidly with 45% year-over-year revenue growth an...
Alibaba Group is raising HK$80 billion through equity to significantly increase its investments in AI and cloud computing. Despite concerns about dilution and monetization risks, management expects faster returns and improved gross margins within 2-3...
Alibaba's stock fell 8% following disappointing Q2 results and further declined after announcing a $10.2 billion investment to expand its AI capabilities. Despite the market's negative reaction, analysts argue that Alibaba's AI spending is still mode...
XPeng's stock fell 7% following a Q2 revenue miss and a softer Q3 revenue forecast, despite a record $6.3 billion valuation for its humanoid robotics unit. The company reported Q2 revenue of $2.91 billion, up 8% year-over-year but below expectations,...
Alibaba announced a record HK$80 billion ($10.2 billion) share sale in Hong Kong following CFO Toby Xu's statement of a strong net cash position of $30.7 billion excluding long-term debt. Investor Michael Burry exited his Alibaba position, citing con...
