Alibaba Profit Drops 75% as AI Spending Surges
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- Alibaba reported a 75% drop in quarterly net income, with ABC News, CNBC, and Barron's all attributing the decline to growing AI investment spending.
- Alibaba shares fell roughly 5% in the wake of the earnings report, while the company's revenue still climbed 9%.
Why it matters: Alibaba's 75% net income collapse and 5% share drop came even as revenue grew 9%, showing that AI infrastructure costs — not a weakening core business — compressed margins, a tradeoff investors are repricing now.
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