Alibaba: Higher Spending Outlook Drags Down Earnings, Inflates Forward P/E (BABA)

Core Viewpoint - Alibaba Group Holding Limited's stock has declined following the release of disappointing 2Q FY2026 earnings, which showed a 72% year-over-year drop in earnings and further expected declines [1]. Financial Performance - The company's earnings fell by 72% year-over-year in 2Q FY2026, indicating significant financial challenges [1]. - There are expectations for continued declines in earnings, suggesting ongoing difficulties in the company's financial performance [1].