Alibaba’s Q2 Reality Check: Cloud Momentum vs. China Demand — What BABA’s Earnings Signal Now
Alibaba’s latest quarter presented a split-screen: Cloud Intelligence reaccelerated on rising AI training and inference demand, while the China consumer backdrop stayed uneven and e-commerce competition remained intense. Reuters reported an overall revenue miss even as cloud revenue grew roughly 26% year over year, underlining a key inflection as AI workloads scale across enterprises. Investors are now weighing whether cloud’s momentum and potential monetization can offset domestic headwinds long enough to unlock a valuation re-rating. The ADRs reflected that debate, jumping to about $135 from roughly $120–$121 over prior sessions as headlines emphasized cloud growth and a strategic push into in-house AI chips to mitigate U.S. export constraints on advanced accelerators.