Alibaba sharply reduced its share repurchases by about 80% in the June 2026 quarter, spending $162 million compared to $815 million a year earlier. The company redirected capital towards AI infrastructure and cloud computing, with capital expenditures rising 75% year-over-year. Despite increased losses in its AI Labs segment and a hefty European Commission fine, Alibaba's management views AI as a key growth engine with a clear path to attractive returns. Investors should watch for successful monetization of AI projects and cloud margin improvements to justify the shift away from buybacks.
Alibaba's stock has fallen 24% in 2026 due to heavy investment in AI, a 75% profit drop, and a $10.2 billion capital raise aimed at expanding AI infrastructure. Despite these challenges, Alibaba has outperformed Chinese tech peers like Baidu and PDD,...
Jefferies forecasts Alibaba's cloud revenue to grow over 50% in financial year 2028, driven by strong AI Cloud and Compute services. The bank expects segment margins to improve and external cloud revenue to outpace overall growth. Alibaba's AI Lab an...
