Is Alibaba AI really making money or just burning cash? The Aug. 20 earnings report will tell the truth. Revenue from cloud rose +38% last quarter, and external revenue was up +40%. AI products have logged triple-digit growth for 11 straight quarters—demand is real, customers are genuinely paying. The only remaining issue is profit.
But Alibaba plans to invest 380 billion yuan over three years—possibly more—and it has clearly stated it will prioritize growth over profit. This earnings report will focus on two things: can cloud growth continue to accelerate? Can such a large investment translate into profit and cash flow?
Scenario A: Cloud grows 40%+ and profitability improves → the market revalues it as an “AI + cloud” company.
Scenario B: AI revenue looks great, but profit is absorbed by capital expenditures → renewed doubts that “growth is fast but profitability is slow.”
With BABA currently at 123.81, support is at 121.5–122, pressure at 125, and only a sustained move above 128–130 would count as a constructive trend strengthening. Alibaba doesn’t need to prove it “has AI” anymore—it needs to prove that AI can turn 380 billion yuan into long-term cash flow. $BABA #股票交易与合约交易的同和异 $BTC
But Alibaba plans to invest 380 billion yuan over three years—possibly more—and it has clearly stated it will prioritize growth over profit. This earnings report will focus on two things: can cloud growth continue to accelerate? Can such a large investment translate into profit and cash flow?
Scenario A: Cloud grows 40%+ and profitability improves → the market revalues it as an “AI + cloud” company.
Scenario B: AI revenue looks great, but profit is absorbed by capital expenditures → renewed doubts that “growth is fast but profitability is slow.”
With BABA currently at 123.81, support is at 121.5–122, pressure at 125, and only a sustained move above 128–130 would count as a constructive trend strengthening. Alibaba doesn’t need to prove it “has AI” anymore—it needs to prove that AI can turn 380 billion yuan into long-term cash flow. $BABA #股票交易与合约交易的同和异 $BTC