Alibaba's third-quarter report for fiscal year 2026 reveals that the company is fully committing to two major sectors—AI + Cloud and instant retail—at the expense of profit margins. Following the release of the financial results, Alibaba's H-share price closed lower. Despite short-term stock price fluctuations, Alibaba remains on the 'Top 100 Hong Kong Stocks' list. The financial report indicates 'revenue growth without profit increase,' with the profit decline primarily stemming from investments in strategic areas and asset deployment, while free cash flow also dropped significantly. The core e-commerce business is under pressure. Although investments in instant retail have impacted short-term profits, they have demonstrated strategic value, with profitability expected by fiscal year 2029. Investments in AI + Cloud are beginning to yield returns, with cloud services emerging as a new growth engine. The company has set a target of exceeding USD 100 billion in external revenue from cloud and AI within five years. Alibaba's current strategy involves sacrificing short-term profitability to secure a future first-mover advantage. As the business evolves, it is poised to establish a more competitive growth model.