“Intense food-delivery competition took a bite out of Alibaba's profit in the latest quarter, but investors are closely watching to see how the tech giant bets on AI as its next growth engine.
The Hangzhou, China, company said Thursday net profit slumped 67% on the year in its fiscal third quarter, while revenue grew about 2%.
"Alibaba maintained strong investments across our core pillars of AI and consumption," Chief Executive Eddie Wu said. "AI is and will continue to be one of our primary growth engines."
The earnings come at a pivotal time for Alibaba: It is waging a fierce battle against other Chinese internet companies in food and on-demand delivery, locked in a cycle of promotions and subsidies that has pressured profitability across the sector.
It is zeroing in on making AI a key engine of growth, continuing to upgrade its Qwen model series and integrating it into its core ecosystem. Its core e-commerce business remains steady.
Alibaba reported net profit of 16.32 billion yuan, equivalent to $2.37 billion, for the three months ended December. That missed a FactSet consensus estimate of 25.74 billion yuan. Revenue rose slightly to 284.84 billion yuan from 280.15 billion yuan, below analysts' expectations of 285.89 billion yuan.” [1]
1. Media & Technology: Alibaba Earnings Disappoint, But Its AI Outlook Is Bright. Qu, Tracy. Wall Street Journal, Eastern edition; New York, N.Y.. 20 Mar 2026: B4.
Komentarų nėra:
Rašyti komentarą