Alibaba (BABA) Stock Drops 5% After Earnings Disappoint Wall Street – Here’s Why
TLDR
- Alibaba’s net profit fell 76% year over year to 10.54 billion yuan, well below the 21.8 billion yuan analysts expected.
- Revenue rose 9% to 268.95 billion yuan, slightly beating estimates.
- Cloud revenue jumped 45% to 48.44 billion yuan, with AI-related product revenue posting triple-digit growth for the 12th straight quarter.
- BABA ADRs dropped around 4.5% in premarket trading Thursday.
- Capital expenditure surged 75% year over year to 67.68 billion yuan, driven by cloud infrastructure spending.
Alibaba (BABA) stock dropped around 4.5% in premarket trading Thursday after the company reported first-quarter earnings that missed Wall Street expectations.
Alibaba Group Holding Limited, BABA
BABA ADRs were down about 4.7% ahead of the open, adding to a year-to-date decline of roughly 12%.
Net profit came in at 10.54 billion yuan ($1.57 billion), a 76% drop from the same quarter a year ago. Analysts had expected 21.8 billion yuan.
ALIBABA $BABA Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: ¥269B (Est. ¥269.3B) 🟡; +9% YoY
🔹 Adj ADS: ¥8.52 (Est. ¥11.26) 🔴; -42% YoY
🔹 AI revenue tripled for the 12th straight qtr
🔹 CapEx: ¥67.7B (Est. ¥29.22B) 🔴; +75% YoY
🔹 Free Cash Flow: -¥44.7B (Est. -¥12.80B) 🔴… Continue reading the full article at the original source below.
