Why Alibaba's Earnings Report May Spell Trouble for Amazon

Chinese e-commerce company Alibaba (NYSE: BABA) posted a mixed earnings report for the fourth quarter of fiscal 2026. In a pre-market release today, Alibaba reported strong revenue growth, driven by a 40% jump in artificial intelligence-related cloud revenue.But at the same time, the company badly missed analysts' earnings expectations, as net income of 86 million yuan ($12 million) was down from nearly 30 billion yuan a year ago, and it posted its first operating loss since 2021. Earnings of $0.19 per share were far below analysts' consensus expectations of $0.84 per share, or the $1.84 per share that it posted a year ago.The good news for Alibaba is that investors appear willing to shake off the loss and focus on Alibaba's growing cloud revenue. The stock was up 7% in morning trading. However, I don't expect that Amazon (NASDAQ: AMZN) would get the same treatment if it posts similar results in its next earnings report.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool