HK Stock Market Move | BABA-W (09988) fell more than 2% during the day, with adjusted net profit for the second quarter dropping 72% year-on-year.

BABA-W (09988) fell more than 2% during trading, as of the time of writing, it has fallen by 1.77% to HK $155, with a turnover of HK $9.8 billion. On the news front, on November 25th, Alibaba released its quarterly and six-month performance ending September 30, 2025. Alibaba's revenue for the second quarter was RMB 247.795 billion, a year-on-year increase of 5%; adjusted EBITA saw a significant year-on-year decrease of 78% to RMB 9.073 billion. Net profit attributable to ordinary shareholders was RMB 20.99 billion, a year-on-year decrease of 52%; non-GAAP net profit was RMB 10.352 billion, a year-on-year decrease of 72%. Alibaba stated that its core businesses of AI+Cloud and Consumer continued to achieve strong growth this quarter. Revenue for the Cloud Intelligence Group in the second quarter was RMB 39.82 billion, a year-on-year increase of 34%, and AI-related product revenue saw triple-digit year-on-year growth for the ninth consecutive quarter. It is worth noting that during the earnings call, Alibaba's CFO, Xu Hong, stated that "we can expect short-term fluctuations in customer management revenue and profit." Regarding Alibaba's performance on the US stock market last night, according to Wall Street News, Goldman Sachs attributed the high open and low close to investors' concerns about the company's e-commerce business. The bank believes that the negative reaction in the stock price was due to the strong performance of the AI+Cloud business segment, which reinforced the narrative and valuation reassessment driven by AI this year. However, investors are increasingly concerned about the e-commerce business, as management commented during the conference call that due to intensified competition and user investment, growth in customer management revenue (CMR) might slow down, and EBITA for the Chinese e-commerce business might experience seasonal fluctuations.