Overview
- Alibaba reported a roughly 67% year-over-year drop in quarterly net income as it poured cash into cloud, AI and fast delivery.
- Cloud Intelligence revenue rose 36% year over year as AI workloads, which use far more computing power, grew at triple-digit rates for the tenth straight quarter.
- Management set a five-year goal to surpass $100 billion in annual revenue from cloud plus AI.
- The stock fell after the report as investors focused on the near-term profit hit from these build-outs.
- Taobao and Tmall grew about 1% versus 6% for China’s online retail market, pointing to maturing growth in Alibaba’s core shopping business.