Alibaba Profit Plunges 76% as AI Spending Surges 75%
BABA sits 36% above its 52-week low of $91.99.
Summary
Alibaba's fiscal Q1 net profit collapsed 76% to 10.54 billion yuan ($1.57 billion), missing expectations, while revenue rose 8.6% to 268.95 billion yuan. The miss was driven by heavy AI investment: capex jumped 75% to 67.68 billion yuan. Cloud revenue accelerated to 45% growth, with AI-related products up triple digits for a 12th straight quarter. Adjusted net profit fell 38% to 20.715 billion yuan. The company also agreed to sell its Lingxi Games unit to Trustar Capital for over $1.5 billion. ADRs fell about 4% premarket. This follows the earlier headline on revenue beat, but adds the profit miss, capex surge, and divestiture details.
At the time of this announcement, BABA was trading at $124.80 on NYSE in the Technology sector, with a market capitalization of approximately $303.6B. The 52-week trading range was $91.99 to $192.67. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.