US Stock Alert | Alibaba (BABA.US) drops over 7% as Q1 net profit falls short of expectations

Zhihu Finance APP reported that on Friday, Alibaba (BABA.US) fell by over 7%, closing at $120.57. According to reports, after the close on August 20, Alibaba released its financial report for the first quarter of fiscal year 2027, with an adjusted net profit of 20.72 billion yuan, lower than the market estimate of 25.58 billion yuan. Capital expenditure for the quarter reached 67.678 billion yuan, up 75% year-on-year, with continued increase in technology investment. Operating profit dropped by 57% year-on-year, and free cash flow saw a net outflow of 44.67 billion yuan, with significant pressure on cash flow.