Alibaba’s core profit plunges even as AI and cloud growth accelerate

Alibaba on Wednesday said its core profitability plunged in the March quarter amid heavy investments in tech and e-commerce.

The Chinese tech giant said its adjusted earnings before interest, taxes, and amortization, a measure of the company’s underlying profitability, came in at 5.1 billion Chinese yuan ($750.9 million).

This financial metric strips out one-time gains or losses to focus on a company’s core business.

Alibaba’s U.S.-listed shares were initially higher in premarket trade before turning negative. They were last seen trading down 3.4%.

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