Alibaba Group is trading 3.55% down now at $125.89 in pre-market after its August 20 earnings report showed a 75% year-over-year profit decline, despite 45% cloud and AI-services growth.
- Capital expenditures surged 75% to approximately $10 billion, while free cash flow deteriorated.
- Revenue slightly exceeded estimates, but the earnings miss intensified concerns about near-term profitability.
- Aggressive AI infrastructure investment appears to be driving the pre-market decline.