Understanding the Market | Alibaba-W continues to fall over 4%, fourth-quarter revenue misses expectations, reports say its AI collaboration plan with Apple is under U.S. review
Alibaba-W's stock price continued to decline by over 4%, dropping 4.21% to HKD 118.2 as of the time of writing, with a trading volume of HKD 5.522 billion. Revenue for the fourth fiscal quarter was RMB 236.454 billion, below market expectations of RMB 237.91 billion. Alibaba Cloud's revenue grew by 18%, marking the fastest growth rate in three years. U.S. officials are reviewing Apple's AI collaboration plan with Alibaba
According to Zhitong Finance APP, Alibaba-W (09988) continued to decline by over 4%, falling 4.21% to HKD 118.2 as of the time of writing, with a transaction volume of HKD 5.522 billion.
In terms of news, Alibaba previously announced its financial results for the fourth quarter of fiscal year 2025 (ending March 31) and the full year. The revenue for the fourth quarter was RMB 236.454 billion, a year-on-year increase of 7%, which was below the market estimate of RMB 237.91 billion; the non-GAAP net profit was RMB 29.847 billion, a year-on-year increase of 22%. Additionally, driven by AI demand, Alibaba Cloud's revenue reached RMB 30.127 billion, a year-on-year increase of 18%, marking the fastest growth rate in three years. Daiwa stated that with the growth in inference demand and the launch of the leading Tongyi Qianwen LLM series, it is optimistic that Alibaba Cloud will continue to expand its market share in the coming years. The firm believes that its ongoing investment in flash sales may raise some market concerns in the short term, but in the long run, it will benefit Taotian Group and local services.
According to media reports, U.S. White House and congressional officials have been closely reviewing Apple's plan to choose Alibaba to develop artificial intelligence (AI) for iPhones in China. In February of this year, Alibaba confirmed that it would collaborate with Apple to develop AI features for iPhones in China
