BABA(US:BABA) 雷峰网·2025-05-19 12:14Core Viewpoint - Alibaba's AI division has maintained triple-digit growth for seven consecutive quarters, yet the secondary market remains unsatisfied, as evidenced by an 8% drop in stock price following the Q4 FY2025 earnings report [2][9]. Summary by Sections Financial Performance - Alibaba reported a 7% year-on-year increase in overall revenue, with Alibaba Cloud revenue reaching 30.127 billion yuan, marking an 18% growth, the fastest in three years, driven by increased adoption of AI-related products [2]. - For the entire fiscal year, Alibaba Cloud's revenue reached 118 billion yuan, achieving double-digit growth [2]. Investment in AI and Cloud Infrastructure - Alibaba plans to invest over 380 billion yuan in cloud and AI hardware infrastructure over the next three years, indicating strong commitment to these sectors [4]. - The company has been actively seeking partners for infrastructure development and has launched several AI models, including Qwen2.5-Max and Qwen3 series, to meet growing demand [4]. Market Dynamics and Customer Base - Alibaba Cloud's AI market strategy focuses on enterprise applications, expanding from large enterprises to small and medium-sized businesses across various industries, including traditional sectors [6]. - The company has been recruiting executives from major cloud providers like AWS and Microsoft to enhance its capabilities in the B2B market [6]. Market Expectations and Stock Performance - Despite strong performance metrics, the market's expectations for Alibaba Cloud's growth were deemed overly optimistic, leading to a significant stock price decline [9]. - Analysts noted that the capital expenditure for the quarter was 24.6 billion yuan, lower than Tencent's 27 billion yuan, raising concerns about Alibaba's enthusiasm for AI investments [9]. Profitability and Competitive Landscape - The profitability of AI products remains uncertain, as the revenue base is low and the return cycle for B2B clients is lengthy [9]. - Price reductions for AI services, such as a 97% decrease in the cost of Qwen-Long model inputs, have raised concerns about profitability in a competitive landscape [10]. - Despite challenges, Alibaba Cloud has managed to achieve profitability while other domestic cloud providers continue to incur losses [10]. Long-term Outlook - The pursuit of AI infrastructure in the B2B sector is characterized by high investment, long cycles, and uncertain returns, suggesting that the recent stock price drop may reflect a market correction regarding AI profitability expectations [11].