Alibaba beat earnings... but shares dropped?!

So Alibaba just reported earnings — and they actually beat expectations.

Revenue came in at RMB 236.5 billion (that’s about USD 32.8 billion), and profits were up 22% year-on-year. You’d think the market would cheer, right?

Nope.

📉 The stock dropped more than 7% after the announcement.

Now, if you’re wondering what the heck happened — let’s break it down.

💡 Earnings beat, but revenue miss

Even though Alibaba grew its profits (which is good), revenue slightly missed expectations. The market was expecting about USD 33.3 billion in revenue, and Alibaba came in just under that.

In today’s market, a miss is a miss. And with big tech, investors want to see top-line growth AND margin strength.

🔍 What’s working (and what’s not)

Here’s a quick breakdown of how the different business units did:

• 🛒 Taobao & Tmall: The core China commerce business grew 9%. Still strong.

• 🌐 International commerce (like Lazada, AliExpress): Up 22%. Nice rebound.

• ☁️ Cloud computing: Grew 18%, thanks to more AI-related services. But still not as dominant as people hoped.

So overall? A decent quarter operationally — but not enough to get investors excited.

🧠 Why did the stock fall?

My take: It’s not just the numbers. It’s the narrative.

Alibaba's in the middle of a restructuring. There’s more competition (Pinduoduo, JD, TikTok Shop), and China’s consumer recovery isn’t as strong as the headlines suggest.

Also, big funds are rotating — moving into U.S. tech giants where growth is more predictable and regulation feels less murky.

👀 So what now?

If you’re holding Alibaba, this isn’t panic territory. But it’s definitely a reminder that cheap doesn’t always mean safe — and sentiment still drives a lot of price action in this macro.

I’m watching how the restructuring plays out over the next 1–2 quarters. And more importantly, whether the cloud business can finally turn into a serious growth engine.

🎁 Quick heads up — Webull has a great offer right now

A few of you asked again about the AirPods Pro 2 lucky draw — here’s how to join:

✅ Sign up for Webull using my link
✅ Fund your account with SGD 2,000 or more
🎉 You’ll be entered to win AirPods Pro 2 (worth $349)

But if you want to max out the reward...

💰 Deposit USD 10,000 and do just 5 trades — you’ll receive USD 300 worth of AAPL shares 🤯
📈 Plus, you’ll get 60 days of free commission trading for US stocks & ETFs
🔥 And super low options fees

👉 Sign up here: https://rebrand.ly/iwpwebull

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.