What caused BABA's Q1 2025 earnings to miss forecasts?

Alibaba's Q1 2025 earnings missed forecasts due to several factors:

1. Revenue Shortfall in Cainiao: Cainiao, Alibaba's logistics and retail arm, saw a 1% revenue decline and a 76% drop in adjusted EBITDA, amid ongoing restructuring with e-commerce businesses. This indicates operational challenges within this segment.
2. Increased Investments: Alibaba is making significant investments in AI and cloud infrastructure, which could impact short-term profitability due to high CapEx. These investments are crucial for long-term growth but may temporarily strain financial performance.
3. Strategic Investments: Alibaba has been investing in strategic areas such as AI and cloud, which is part of its plan to bolster long-term profitability. These investments may not yield immediate results, affecting short-term financial metrics.

In summary, Alibaba's Q1 2025 earnings missed forecasts due to a combination of factors including revenue shortfall in Cainiao, increased investments and strategic investments.