BABA shares slid in premarket trading as adjusted earnings fell short of estimates, offsetting stronger revenue and cloud growth.
Alibaba Group (BABA) shares declined 4.5% in premarket trading after reporting adjusted earnings below Wall Street expectations. The miss overshadowed a revenue beat and a sharp acceleration in its cloud business for the first quarter.
Revenue grew stronger than anticipated, but earnings per share failed to meet consensus estimates. The company’s cloud segment showed robust growth, though investors focused on the overall earnings shortfall.
The premarket drop reflects investor disappointment despite positive cloud performance, signaling concerns over profitability trends.