Alibaba’s Q4 adjusted earnings declined sharply to 0.69 yuan per ADS as revenue missed estimates amid heavy investments.
Alibaba Group reported a 24% year-over-year drop in fourth-quarter adjusted earnings to 0.69 yuan per American depositary share, missing analyst expectations. Revenue reached 243.38 billion yuan, or $35.8 billion, but fell short of consensus estimates as investments in artificial intelligence and food delivery weighed on profitability.
Analysts polled by FactSet had anticipated stronger earnings, reflecting a broader slowdown in growth for the Chinese tech giant. The company’s core commerce and cloud segments faced pressure, while spending on AI initiatives and food-delivery expansion accelerated.
Shares of Alibaba slipped in early trading following the earnings release, reflecting investor concerns over margin compression and elevated costs.