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Alibaba Group (BABA) shares have declined 8.2% over the past month, underperforming the Zacks Internet-Commerce industry, amid uncertainties surrounding its AI partnership with Apple. The companies have made strides in integrating Alibaba’s Qwen3 AI models with Apple devices, though regulatory issues may hinder the partnership’s future.
Alibaba reported total revenues of RMB 236.5 billion for Q4 fiscal 2025, marking a 7% year-over-year increase but falling short of the Zacks Consensus Estimate by 1.49%. The company’s adjusted EBITA grew 36% year-over-year to RMB 32.6 billion. Despite some areas, like Cainiao Smart Logistics, facing revenue declines due to restructuring, the Taobao and Tmall Group showed resilience with a 12% increase in customer management revenues.
Amid ongoing regulatory scrutiny, U.S. officials are examining the Apple-Alibaba AI collaboration. The Zacks Consensus Estimate for Alibaba’s fiscal 2026 earnings has been revised down by 1.5% over the past 60 days to $10.62 per share, indicating concerns about the company’s growth trajectory.
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