Alibaba shares fall 5% as AI spending drives 75% drop in net income

Alibaba reported results for the June quarter that reflected significant headwinds from investments in artificial intelligence infrastructure. The company’s net income fell 75% during the period, marking a substantial decline in profitability despite modest revenue growth.
Revenue reached 268.95 billion Chinese yuan, representing a 9% increase and slightly exceeding analyst expectations of 268.88 billion yuan. However, the company’s capital expenditure surged 75% to 67.7 billion Chi