“`html
Alibaba Quarterly Financial Performance
Alibaba Group (NYSE: BABA) reported a 5% year-over-year revenue increase for the September 2025 quarter, reaching RMB 247.8 billion ($34.8 billion). Despite this growth, the company’s non-GAAP net income plummeted approximately 72%, and free cash flow turned negative due to heavy investments in logistics, data centers, and quick commerce.
Key Challenges
The intense competition in e-commerce continues to impact Alibaba, with its core customer management revenue increasing by only 10%. Additionally, quick commerce initiatives have elevated logistics expenditures and customer acquisition costs, leading to a 76% drop in adjusted earnings before interest, tax, and amortization (EBITA) for its Chinese e-commerce sector.
Investor Sentiment
Investor sentiment toward Chinese tech remains unpredictable, influenced by macroeconomic conditions and regulatory news. This volatility affects Alibaba’s stock performance, causing it to lag despite operational growth in AI and cloud sectors. Investors are advised to monitor the company’s cloud margins and quick commerce profitability closely.
“`
