Alibaba Group stock has fallen 19.7% year to date, underperforming the Zacks Internet-Commerce industry and the Retail-Wholesale sector. Fourth-quarter fiscal 2026 revenue rose just 3% year over year to RMB243.4 billion, missing estimates, while adjusted EBITA collapsed 84% and the company posted its first operating loss since early 2021. Management warned that capital expenditure will likely overshoot its original RMB380 billion target, and free cash flow turned negative. The Zacks Consensus Estimate for fiscal 2027 earnings is $6.89 per share, down 5.5% over the past 30 days. Alibaba also faces a $600 million non-prosecution settlement with the U.S. Department of Justice, ongoing Pentagon blacklist risk, and intensifying competition from larger cloud rivals Microsoft, Alphabet, and Amazon.
Alibaba Group Holding LtdRevenue miss, 84% EBITA collapse, first operating loss since 2021, negative free cash flow, and downward earnings revisions.
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