Is Alibaba Stock a Rebound Candidate?

Alibaba (NYSE: BABA) shares sank after the company reported its fiscal third-quarter results (ending Dec. 31, 2025), as rising expenses ate into profitability and results fell shy of expectations. The company has been investing heavily in both AI infrastructure and quick commerce. The stock is down nearly 15% on the year, as of this writing.

Let's take a close look at its results and prospects to see if the stock is a rebound candidate.

Alibaba's cloud computing business continues to see strong revenue growth, fueled by demand for artificial intelligence (AI) products. Its cloud intelligence revenue jumped by 36% to $6.1 billion. AI product revenue more than doubled for the 10th straight quarter. The segment's adjusted EBITA (earnings before interest, taxes, and amortization), meanwhile, climbed by 25% to $559 million.

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Source Fool.com