Alibaba Group (BABA) reported a 75% drop in quarterly profit on Aug. 20 as it spent more on AI infrastructure. Even so, revenue rose 9% to nearly $40 billion, while its AI Cloud and Compute Services revenue jumped 45% to $7.2 billion.
Three days later, Alibaba raised $10.2 billion by issuing 710 million new shares at HK$112.70 each. The price was 8.4% below the prior close, diluting existing shareholders by about 3.6%. Investors pushed BABA stock lower as they weighed the cost of the company’s AI plans.
