On May 15, Alibaba fell 5.19% in pre-market trading, trading at $135.52/share, with trading volume of $18.85 million. The decline follows a sharp 8.18% rally on May 13 after the company released its FY2026 Q4 and full-year earnings.
While Alibaba's full-year revenue crossed the 1 trillion RMB milestone for the first time at 10,236.7 billion RMB, the quarterly results revealed significant profit compression. Q4 revenue of 2,433.8 billion RMB came in slightly below analyst expectations of 2,465 billion RMB. More notably, adjusted EBITA plunged 84% year-over-year to 51.02 billion RMB, and the company reported an operating loss of 848 million RMB versus a profit of 28.47 billion RMB in the prior year period. The margin deterioration stems from heavy investments in AI infrastructure, instant retail expansion, and user experience initiatives.
The AI and cloud segment remained a bright spot, with AI-related product revenue reaching 89.71 billion RMB, representing over 30% of cloud external revenue and marking the eleventh consecutive quarter of triple-digit growth. However, management acknowledged that new server deployment costs have surged over 100% due to extreme supply-demand tightness, adding near-term cost pressure.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments