BABA Stock Slips Post Earnings – Alibaba Vows To Keep Investing In AI And Cloud

• Alibaba Group reported quarterly revenue of RMB243,380 million ($35.28 billion), an increase of 3% from the year-ago quarter.
• The company noted that its AI-related product revenue for the quarter has shown continuous growth momentum and delivered its eleventh straight quarter of triple-digit year-over-year growth.
• Alibaba Group posted quarterly revenue from cloud intelligence of about RMB41,626 million, a 38% year-over-year increase, driven primarily by public cloud revenue growth, including AI-related product adoption.

Shares of Alibaba Group Holdings (BABA) drew investor attention in Wednesday’s premarket after the Chinese e-commerce giant reported its quarter-ended March earnings, while pressing ahead with investments in AI infrastructure, quick commerce, and its Qwen ecosystem.

Alibaba Group reported quarterly revenue of RMB 243,380 million ($35.28 billion), an increase of 3% from the year-ago quarter. However, adjusted earnings per American Depositary Shares (ADS) of RMB 0.62 declined 95% year over year.

“Alibaba’s full-stack AI investments have progressed from incubation to commercialization at scale. This quarter, we achieved accelerated breakthroughs across models, cloud infrastructure, and applications,” said Eddie Wu, Chief Executive Officer at Alibaba Group.

BABA’s Big Push On Cloud Intelligence 

Alibaba Group’s quarterly revenue from cloud intelligence was about RMB 41,626 million, a 38% year-over-year rise, primarily driven by public cloud revenue growth, including AI-related product adoption.

“Cloud Intelligence Group’s external revenue growth accelerated to 40%, with AI-related products accounting for 30% of this revenue,” said Wu.

He also added that the company anticipates massive agentic AI potential and has already rolled out several enterprise AI agents and coding use cases. Wu further stated that the company has integrated its Qwen app into e-commerce capabilities, strengthening synergies between AI and the consumer ecosystem.

“We are confident in our business outlook and will continue to invest in AI + Cloud to strengthen our competitive advantages,” said Toby Xu, Chief Financial Officer at Alibaba Group.

The company noted that its AI-related product revenue for the quarter has shown continuous growth momentum and delivered its eleventh straight quarter of triple-digit year-over-year growth.

Alibaba's board also approved a $2.5 billion annual dividend at $1.05 per American Depositary Share (ADS).

BABA Stock: What Retail Thinks About It?

On Stocktwits, retail sentiment surrounding the stock has remained ‘bullish’  amid ‘high’ message volumes in the past 24 hours.

Shares of Alibaba Group have declined more than 8% so far this year.

(1RMB  = $0.15)

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