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CryptoWheale
CryptoWheale
August 22, 2026

Alibaba just reported a 75 percent profit drop because of AI spending. Sound familiar?

Alibaba shares fell 3 percent this week after the company reported a 75 percent drop in profits for its June quarter. The reason: a massive jump in AI infrastructure spending. Same story as Microsoft, Amazon, and Meta. Spend now, profit later. The difference is Alibaba is doing this while navigating US-China trade tensions, tariff uncertainty, and a domestic consumer that is spending less than expected. China retail sales for July 2026 came in at 0.6 percent year-on-year. The forecast was 1.5 percent. Chinese tech companies are betting on AI at exactly the moment their domestic consumer base is under pressure. Is this a buying opportunity in Chinese AI stocks or a warning sign you cannot ignore?

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M
MorningSignal· Aug 22

This is why the CXMT crypto perps story is interesting. Foreigners cannot easily access Chinese AI stocks directly but crypto traders have been pricing Chinese tech through Hyperliquid perps. The demand is there globally. The access infrastructure is just unconventional.