Alibaba's Q2 FY26 results show modest revenue growth but steep margin erosion as competition and heavy spending weigh on profits into 2026.
Alibaba (BABA) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Chinese tech firms are releasing AI models at a faster pace as competition with U.S. rivals tightens. Open-source and low-cost strategies are driving the adoption of Chinese AI in emerging markets.
BABA's "All Others" unit's revenues decline 25% YoY in Q2 FY26, widening losses and dragging growth despite strength in core businesses.
In the latest trading session, Alibaba (BABA) closed at $171.37, marking a -1.07% move from the previous day.
Alibaba Group Holding Ltd (NYSE:BABA) is edging closer to listing its chip unit, T-head, leaning into strong investor demand for companies aiming to challenge Nvidia (NVDA) in the AI accelerator space.
Alibaba Group (NYSE:BABA) is reportedly preparing an initial public offering for its chipmaking arm, T-Head Semiconductor. According to a report from Bloomberg, which cited people familiar with the matter, Alibaba plans to first restructure T-Head into a standalone business with partial ownership held by employees, before exploring a potential initial public offering.
Alibaba is preparing to list its chipmaking arm, T-Head, Bloomberg News reported on Thursday, citing people familiar with the matter.
Chinese stocks might have gone from uninvestable to worth exploring, given the discounted valuations to be had on a number of internet stocks, many of which are making huge splashes in AI.
For the quarter ended December 31, 2025, the fund returned 1.59% (Class I shares at NAV) versus the ICE BofA VXA0 - Convertible Index return of 1.97%. Lumentum's stock and convertible advanced significantly during the quarter following its strong earnings release, which highlighted a 58% surge in revenue year-over-year. During the quarter, MicroStrategy's stock and convertibles declined as investors debated the company's leverage and dilution risk while the price of Bitcoin retreated from October highs.
BABA's quick commerce revenues jump 60% YoY, lifting engagement and monetization, but heavy subsidies and logistics costs are squeezing near-term margins.
Alibaba Group Holding Limited unveiled a major upgrade to its Qwen AI app, integrating it across core platforms for ecosystem-wide AI leverage. BABA's unified AI interface strategy aligns with China's push for practical, applied AI, positioning the company to accelerate user growth and monetization. Alibaba Cloud is expected to drive significant revenue growth, with potential to capture 80% of incremental industry revenue by 2026 and reach 60% market share.