business
Alibaba stock falls as revenue misses, AI spending weighs on earnings
Key takeaways
- What’s behind the move: The Chinese e-commerce and cloud giant reported a 3% increase in fourth quarter revenue on Wednesday, missing analyst expectations.
- Cloud revenue surged an annualized 38% to $6.13 billion, roughly in line with Wall Street estimates.
- Alibaba has been increasing its spending on AI and user acquisition efforts.
Alibaba stock falls as revenue misses, AI spending weighs on earnings Ines Ferré · Senior Business Reporter Wed, May 13, 2026 at 6:54 PM GMT+7 1 min read BABA What happened: Alibaba (BABA) stock fell 3% in premarket on Wednesday before paring losses to less than 1%.
What’s behind the move: The Chinese e-commerce and cloud giant reported a 3% increase in fourth quarter revenue on Wednesday, missing analyst expectations. Alibaba’s earnings were weighed down by heavier spending on AI initiatives, cloud infrastructure expansion, and continued investment in its rapid-delivery business, which focuses on fulfilling orders within an hour.
Cloud revenue surged an annualized 38% to $6.13 billion, roughly in line with Wall Street estimates.
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