Alibaba Group reported a 75% drop in quarterly profit to 10.4 billion yuan due to significant spending on AI infrastructure, which squeezed margins. Revenue rose 9% to 269 billion yuan, driven by strong growth in AI-related products and cloud services, but net income and adjusted earnings per ADS fell well below analyst expectations. Capital expenditure surged 75%, reflecting expanded computing capacity and higher chip costs. Despite the profit decline, Alibaba's AI segment showed robust momentum with triple-digit revenue growth for the twelfth consecutive quarter, signaling continued strategic focus on AI development.
Shares of Alibaba, PDD, and JD.com rose on Friday, with Alibaba leading a 3% gain amid a broader uptick in Chinese internet stocks despite a weak overall market. This move appears driven by sector rotation rather than company-specific news, as Alibab...
Alibaba's stock fell 18% after missing Q1 earnings expectations, but this selloff is seen as overdone, leading to an upgrade to Strong Buy. The company's AI Cloud revenue surged 45% year-over-year, with expectations to maintain over 40% growth and im...
