Alibaba Reports Mixed Financial Results Amid AI Excitement
Alibaba (NYSE: BABA) reported a 3% increase in total revenue to $35.3 billion for its fiscal fourth quarter ended March 30, despite a dramatic 61% decline in adjusted EBITDA, which fell to $2.4 billion. The company’s e-commerce operations saw a revenue rise of 6% to $17.7 billion, although adjusted EBITA for this segment dropped 40% to $3.5 billion. Quick commerce revenue surged 57% to $2.9 billion but contributed to reduced profitability due to heavy investments.
Key highlights include Alibab’s AI-related product revenue experiencing triple-digit growth for the 11th consecutive quarter, bolstered by its AI chip production capabilities, which management claims is unmatched in China. The cloud intelligence segment revenue rose by 38% to $6 billion with adjusted EBITA reaching $550 million. Despite promising growth prospects, concerns linger about the heavy investment cycle and declining profitability in its core businesses.
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