Alibaba Aggressively Invests in AI and Quick Commerce, Profits Plummet
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The Alibaba Group Holding Limited (NYSE: BABA, HKEX: 9988) reported moderate revenue growth for the second quarter of 2025 but had to cope with significant declines in profit and cash flow. The company generated revenues of 247.8 billion RMB, which represents an increase of 5%, while on a comparable basis, excluding divested business units, double-digit growth would have been achieved. The operational profit development was weak: The operating result shrank by 85% to 5.4 billion RMB, which management primarily attributed to high future investments....
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