Alibaba says full-stack AI investments have gone from incubation to commercialization (BABA:NYSE)

Alibaba reported 3% fiscal fourth-quarter revenue growth, but like-for-like revenue excluding the disposed Sun Art and Intime businesses would have risen 11% year-over-year. Profitability fell sharply in the quarter as higher spending weighed on margins, creating a mixed-to-negative read on operating performance despite the underlying growth improvement.

Analysis

Alibaba reported 3% fiscal fourth-quarter revenue growth, but like-for-like revenue excluding the disposed Sun Art and Intime businesses would have risen 11% year-over-year. Profitability fell sharply in the quarter as higher spending weighed on margins, creating a mixed-to-negative read on operating performance despite the underlying growth improvement.