Alibaba stock is falling as it spends heavily on AI. CEO Eddie Wu insists the tech will be its main growth driver
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Alibaba stock is falling as it spends heavily on AI. CEO Eddie Wu insists the tech will be its main growth driver
"In total, net income dropped from 46.4 billion Chinese yuan ($6.8 billion) to 15.6 billion Chinese yuan ($2.27 billion). The downturn is one of multiple disappointments in the Chinese technology giant's latest financial results, announced Thursday, March 19. Alibaba also reported a 71% decrease in diluted earnings per share YOY."
"Even Alibaba's revenue, which rose 2% YOY, failed to meet expectations. The company reached 284.8 billion Chinese yuan ($41.4 billion) in revenue for quarter four, falling short of Wall Street's predicted 290.7 billion Chinese yuan ($42.3 billion), according to consensus estimates cited by CNBC."
"The small revenue increase was led by the company's Cloud Intelligence Group, which rose 36% YOY. As of publication, U.S.-listed shares of Alibaba Group Holding Ltd (NYSE: BABA) were down more than 4% in premarket trading on Thursday."
Alibaba reported significant financial disappointment in Q4 2025, with net income plummeting 66% year-over-year from 46.4 billion to 15.6 billion Chinese yuan. Diluted earnings per share declined 71% during the same period. Revenue reached 284.8 billion yuan, representing only 2% growth but falling short of Wall Street's consensus estimate of 290.7 billion yuan. The company's stock declined over 4% in premarket trading following the announcement. Cloud Intelligence Group emerged as a bright spot, achieving 36% year-over-year revenue growth, though overall performance remained disappointing amid substantial AI infrastructure investments.
Read at Fast Company
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