Alibaba Group stock falls 1.84 percent as AI spending weighs on earnings

Published on 10/06/2026 at 17:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Alibaba Group stock was at USD 108.76 on October 6, 2026, down 1.84 percent. Fiscal Q1 revenue rose 9 percent, while net income fell 75 percent.

BABA, US01609W1027, Illustration mit AI erstellt.

Alibaba Group stock (ISIN US01609W1027) was trading at USD 108.76 on the NYSE on October 6, 2026, down 1.84 percent from the prior close. The move comes against a mixed fiscal Q1 2027 earnings picture, with AI cloud growth accelerating while profit contracted.

Revenue grows as profit falls

According to Beancount on September 14, 2026, Alibaba reported fiscal Q1 2027 revenue of RMB 268,953 million for the quarter ended June 30, 2026, up 9 percent from RMB 247,652 million. Net income fell 75 percent to RMB 10,444 million from RMB 42,382 million in the comparable quarter.

The contrast is central to the stock story. Operating profit declined to RMB 15,161 million from RMB 34,988 million, while capital spending reached RMB 67,678 million, an increase of 75 percent year over year. Alibaba is converting more cash into AI capacity before the new infrastructure has fully translated into group earnings.

AI cloud supplies the growth

AI Cloud and Compute Services revenue rose 45 percent to RMB 48,437 million from RMB 33,418 million, according to Beancount. Segment adjusted EBITA increased 133 percent to RMB 5,628 million, giving the cloud division a 12 percent adjusted EBITA margin.

That growth provides the bullish counterweight to the profit decline, but the scale matters. Cloud revenue represented less than one-fifth of consolidated quarterly revenue, while the company invested RMB 67,678 million across the group. For investors, the key test is whether cloud profitability can expand faster than AI infrastructure and application costs.

Analysts see a wide valuation gap

MarketBeat reports a Moderate Buy consensus based on 20 analysts as of October 2, 2026. The average twelve-month target is USD 186.33, with a high of USD 225.00 and a low of USD 135.00; the average target lies 71.3 percent above the October 6 price of USD 108.76.

The market capitalization was USD 260.7 billion on October 6, 2026. The 52-week range was USD 91.99 to USD 188.66, placing the stock 42.4 percent below its yearly high and 18.2 percent above its yearly low.

Alibaba Group stock trades lower

Alibaba Group stock was last at USD 108.76 on the NYSE on October 6, 2026 at 11:56 a.m. ET, with 4,106,571 shares traded. The current session puts the market's attention on the cost of AI expansion as much as on the 45 percent cloud revenue increase.