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Alibaba Bets Heavily on AI and Quick Commerce as Profit Slides in December Quarter

Story Highlights
  • Alibaba’s December 2025 quarter saw modest revenue growth, driven by strong AI-powered cloud momentum despite asset disposals.
  • Profits fell sharply as Alibaba ramped investment in AI, quick commerce and user experience, trading margins for future growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Alibaba Bets Heavily on AI and Quick Commerce as Profit Slides in December Quarter

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The latest update is out from Alibaba Group Holding Ltd. ( (HK:9988) ).

Alibaba reported unaudited results for the December quarter of 2025, highlighting modest top-line growth and heavy investment in artificial intelligence and consumption-focused initiatives. Group revenue rose 2% year-on-year to RMB284.8 billion, or 9% on a like-for-like basis excluding disposed Sun Art and Intime operations, while the Cloud Intelligence Group posted 36% revenue growth with AI-related products delivering a tenth straight quarter of triple-digit gains.

Profitability weakened sharply as income from operations fell 74% and adjusted EBITA declined 57%, reflecting stepped-up spending on quick commerce, user experience and AI technology despite efficiency gains and strong cloud momentum. Management emphasized that its full-stack AI strategy—including foundation models, cloud infrastructure, proprietary chips and the fast-growing Qwen consumer app with more than 300 million monthly active users—positions Alibaba to drive future growth in both enterprise and consumer AI, underpinned by solid liquidity and cash generation but near-term margin pressure for investors to monitor.

The most recent analyst rating on (HK:9988) stock is a Hold with a HK$138.00 price target. To see the full list of analyst forecasts on Alibaba Group Holding Ltd. stock, see the HK:9988 Stock Forecast page.

More about Alibaba Group Holding Ltd.

Alibaba Group Holding Limited is a China-based technology conglomerate operating major businesses in e-commerce, cloud computing, digital media, and related consumer services. Its shares trade in Hong Kong and its American depositary shares are listed on the New York Stock Exchange under the ticker BABA, reflecting its dual presence in mainland Chinese and global capital markets.

Average Trading Volume: 85,706,943

Technical Sentiment Signal: Buy

Current Market Cap: HK$2316.6B

For an in-depth examination of 9988 stock, go to TipRanks’ Overview page.

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