Alibaba's Profitable Cloud Unit Cushions E-Commerce Slowdown

As of August 24th, 2025, Alibaba, the Chinese e-commerce giant, has managed to overcome trade war concerns and its own lack of material top-line growth in recent years. The company's shares have risen 46% over the past year, demonstrating its resilience.

Alibaba's flagship e-commerce business in China remains a cash cow, with its Taobao and Tmall platforms accounting for 45% of the company's $137 billion in consolidated revenue in fiscal 2025. More importantly, these two platforms generated $27 billion, or 113%, of Alibaba's $23.8 billion in adjusted EBITA, effectively funding the company's other money-losing ventures.

In contrast, Alibaba's international e-commerce business, including its AliExpress platform that sells discounted merchandise to U.S. consumers, has struggled, with single-digit revenue growth in the last three fiscal years. However, this segment only accounts for a modest 13% of Alibaba's top line, and the company may be better off focusing on its highly profitable domestic operations.

Looking ahead, Alibaba is investing in a range of new initiatives, from artificial intelligence to food delivery, diversifying its revenue streams. While some of these side bets may be more trouble than they're worth, the company's strong position in the Chinese e-commerce market and its fast-growing cloud business provide a solid foundation for continued growth in the coming year.