Alibaba sees revenue hit by caution in cloud space

It turns out that the cloud industry might not, actually, be the gift that keeps on giving for some

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Following recenthealthy cloud sector results from AWS, Google, and Microsoft, enter some tempered expectations asAlibaba Cloudhas reportedly missed its own targets.

PerCNBC, the Chinesecloud storageprovider continues to face local pressure from a rise in competition and an increasingly cautious local consumer base.

Though the company’s overall net income has dropped 29% year-on-year (YoY), maybe don’t feel too bad for them, as its overall US shares still saw a 2% rise in value, and it still made $3.4 billion in net income.

Alibaba’s tumultuous cloud growth

CNBCquoted a company spokesperson as claiming the somewhat dramatic fall in income was driven by “an increase in impairment” acrossits investments.

However, it shouldn’t be forgotten that Alibaba is currentlycaught in a pivot out of the Australian and Indian regional cloud markets. Time will only tell if Alibaba will be able to ride out this period of revenue shrinkage and was in fact right toretain in-house control of its cloud businessand scrap a specific IPO listing for it, a decision that was up in the air as late as mid-November 2023.

For Alibaba’s Cloud Intelligence Group, quarterly revenue currently sits at having risen 6% YoY, a decrease of 3% compared to last November. Management sees artificial intelligence (AI) as a core driver of growth for that part of the business, with a spokesperson claiming that the company’s ““AI-related product revenue continued to grow at triple-digits year-over-year.”

Despite drops in revenue across the board and decreases in growth for cloud, Alibaba has somehow calculated its EBITA, a measure of profit calculating earnings before interest, taxes and amortization, as having risen 155% YoY.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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