Alibaba Shares Drop 6.4% after Q4 Revenue Grows 2% and Profit Plunges 67%
Alibaba reported Q4 revenue up 2% to 285 billion yuan while net income plunged 67%, driving shares down 6.4%. Its cloud revenue rose 36% and AI product sales posted triple-digit growth for a tenth consecutive quarter as it targets $100 billion in cloud and AI sales within five years.
1. Q4 Financial Results
Alibaba delivered revenue of 285 billion yuan, up 2% year-over-year, but net income collapsed by 67%, triggering a 6.4% slide in its share price as core retail margins came under pressure.
2. Cloud and AI Performance
The cloud division posted a 36% revenue increase, while AI-related product sales achieved triple-digit growth for the tenth straight quarter. Management reiterated a goal to exceed $100 billion in combined cloud and AI external revenue over the next five years, implying roughly 35% annual growth.
3. E-commerce Competition and Outlook
Intense competition in China’s e-commerce and food delivery markets continues to weigh on Alibaba’s core business. Analysts note the company will need significant catalysts—such as stronger monetization or breakthrough AI offerings—to overcome current resistance and restore investor confidence.