Alibaba Group reported a near-total collapse in fourth-quarter profitability. Adjusted net income fell to $12 million, representing a decline of nearly 100%.
Revenue rose 3% to $35.28 billion, slightly missing analyst expectations. Adjusted EBITA plunged 84% during the period.
The company attributed the profit drop to massive spending on AI initiatives and cloud infrastructure. Capital also flowed into efforts to compete within the quick commerce delivery market.
Alibaba shares ended higher after a volatile trading session. Investors focused on the Cloud Intelligence Group, where revenue surged 38% due to soaring demand for AI products.