Alibaba Shares Fall Over 6% on 66% Net Income Drop Despite AI Ambitions

Alibaba's latest quarterly report reveals a 66-67% plunge in net income, driven by sluggish retail sales and high AI investment costs. This sharp profit decline overshadowed growth in cloud and AI sectors, causing shares to drop more than 6% in US trading. CEO Eddie Wu highlights aiming for $100 billion in combined AI and cloud revenue over five years, signaling continued heavy AI spending despite near-term earnings pressure.