---
title: "[Giveaway] Cloud is surging, profits are getting hammered. Which side will you bet on for Alibaba's earnings report?"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/43457579.md"
description: "In the previous quarter, Alibaba $Alibaba(BABA.US), $09988 reported an operating loss of 848 million RMB, whereas the same segment was profitable with a gain of 28.465 billion RMB last year. The losses stem not from the core business itself, but from proactive investments in technology, instant retail, and user experience. In the same earnings report, revenue from external customers for Alibaba Cloud rose by 40%, with AI product revenues posting triple-digit growth for 11 consecutive quarters. For the latest earnings released on August 20 💰, market expectations were sharply divided: revenue is expected to grow by 15%, while EPS is projected to decline by 30% YoY..."
datetime: "2026-08-18T11:06:50.000Z"
locales:
  - [en](https://longbridge.com/en/topics/43457579.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/43457579.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/43457579.md)
author: "[热点君](https://longbridge.com/en/profiles/1450684.md)"
generator: "portal-rs"
---

# [Giveaway] Cloud is surging, profits are getting hammered. Which side will you bet on for Alibaba's earnings report?

Last quarter, $BABA-W(09988.HK) and $Alibaba(BABA.US) incurred an operating loss of $848mn, whereas the same segment was profitable at $28.465bn a year ago.

The losses stem not from the core business itself, but from strategic investments in technology, instant retail, and user experience. In the same earnings report, Alibaba Cloud's revenue from external customers surged 40%, with AI product revenue posting triple-digit growth for 11 consecutive quarters.

**For the latest Q2 FY2024 earnings on August 20 💰**, market expectations were sharply divided: top line growth was forecast at ~15%, while EPS was expected to contract 30% YoY. Options pricing already implied a ±7% move on the reporting day. The stock has been volatile all year, hitting a high of $181 in January before slumping to $91.99 in June.

**Live stream link:**[**Alibaba (BABA.US, 09988.HK) Fiscal Year 2027 Q1 Earnings Conference Call**](https://longbridge.cn/zh-HK/lives/351317?channel=SH000001&invite-code=Y7JE5F&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-HK&share_track_id=66fb2a95-ad5e-4eb4-9693-26a3cd859563)

**Speak your mind in the comments**🎤: Can the cloud division sustain its valuation? Will profits rebound as subsidies fade? When will the heavy AI spend start paying off? Pick one topic and dive deep!

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## Comments (410)

- **Zhou小灰 · 2026-08-21T15:57:35.000Z**: Alibaba's core business remains solid; sacrificing short-term profits to boost market share in instant retail is a long-term strategic decision. Meanwhile, its second growth curve is clear, with cloud revenue continuing to grow at a high rate. Alibaba is becoming increasingly focused, and we will co
- **珍珍姐 · 2026-08-21T15:54:30.000Z**: Performance needs improvement
- **plio · 2026-08-21T15:53:56.000Z**: Bullish long-term. Revenue grows steadily, Alibaba Cloud's AI segment surges; heavy compute capex weighs on near-term profits, trading short-term pain for long-term transformation opportunities.
- **VinVin · 2026-08-21T15:53:16.000Z**: Go Alibaba
- **Pietro · 2026-08-21T15:51:42.000Z**: Alibaba gogogo
- **llll l · 2026-08-21T15:50:54.000Z**: well if it's going up
- **新用户_2aOLY · 2026-08-21T15:49:43.000Z**: It's all thanks to Pingtouge
- **爱喝酒的魏先生 · 2026-08-21T15:47:05.000Z**: I personally don't see much upside for Alibaba in the future; it lacks a moat.
- **goldbaby · 2026-08-21T15:36:39.000Z**: Only Alibaba is worth watching.
- **O9sdhq · 2026-08-21T15:27:58.000Z**: The upward trend in revenue and stock price this quarter is actually correct.
- **傻傻拿住 · 2026-08-21T15:27:41.000Z**: Eye-opening
- **HongKoi · 2026-08-21T15:27:11.000Z**: generally bullish as all the bad news and punishment have already happened. it does have limited downside as long as the business keep the momentum but if it performs just slightly better than expected, big money is gonna make it surge, so nothing to worry about it personally. Not a fan of this stoc
- **別墅靠下海 · 2026-08-21T15:25:04.000Z**: $Alibaba(BABA.US)$BABA-W(09988.HK)Looking at today's earnings report, this is a classic case of "burning cash to build barriers in the first half of the AI race, waiting for returns in the second half"!!!First, let's analyze from two perspectives.The positive side: Alibaba Cloud has establis
- **Edward0109 · 2026-08-21T15:24:22.000Z**: Alibaba's earnings were poor. That's terrible.
- **站在海边的昆西 · 2026-08-21T15:18:35.000Z**: Chinese concept stocks are in a tough spot; with no standout data in their earnings reports, a sustained rally is unlikely. However, we remain bullish on their long-term transformation. With surging demand for AI computing power, achieving 800 billion yuan in cloud revenue within three years is not 
- **叶辛梓 · 2026-08-21T15:15:42.000Z**: Can we go now?
- **生零零0 · 2026-08-21T15:04:24.000Z**: For Alibaba, it's all about Alibaba Cloud.
- **农场悟道 · 2026-08-21T15:00:59.000Z**: ，
- **新用戶_XUIzja · 2026-08-21T14:53:14.000Z**: Alibaba is trading short-term profits for dominance in cloud and AI. The triple-digit growth is no joke; the key lies in whether the monetization speed and external customer growth rate will sustain into the next quarter.
- **股神对立面 · 2026-08-21T14:36:04.000Z**: Not doing well


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**