Stock Market Update
May 13, 2026
UPGRADES
Alibaba on Wednesday said its core profitability plunged in the March quarter amid heavy investments in tech and e-commerce, as executives talked up the company’s AI spending.
Executives at the technology giants spent the earnings call defending the company’s investments, telling analysts that they will eventually pay off.
“We see the ROI (return on investment) on this investment in the next 3-to-5 years as being extremely clear,” Wu said on the earnings call on Wednesday.
The Chinese tech giant said its adjusted earnings before interest, taxes, and amortization (EBITA), a measure of the company’s underlying profitability, came in at 5.1 billion Chinese yuan ($750.9 million), an 84% year-on-year drop.
DOWNGRADES
Wholesale prices in April posted their highest annual increase in more than three years, signaling more nettlesome inflation as pipeline costs intensify.
The producer price index rose a seasonally adjusted 1.4% for the month, much higher than the 0.5% Dow Jones consensus forecast and the upwardly revised 0.7% March increase, the Bureau of Labor Statistics reported Wednesday. This was the largest monthly gain since March 2022.
On an annual basis, the index was up 6%, the biggest increase since December 2022.
Excluding food and energy, the core PPI accelerated 1%, compared with the 0.4% estimate. Excluding food, energy and trade services, the PPI rose 0.6 %
NEWS
Alibaba on Wednesday said its core profitability plunged in the March quarter amid heavy investments in tech and e-commerce, as executives talked up the company’s AI spending.
Executives at the technology giants spent the earnings call defending the company’s investments, telling analysts that they will eventually pay off.
“We see the ROI (return on investment) on this investment in the next 3-to-5 years as being extremely clear,” Wu said on the earnings call on Wednesday.
The Chinese tech giant said its adjusted earnings before interest, taxes, and amortization (EBITA), a measure of the company’s underlying profitability, came in at 5.1 billion Chinese yuan ($750.9 million), an 84% year-on-year drop.