Alibaba's U.S.-listed shares fell around 4% in premarket trading after the Chinese e-commerce and cloud company reported second-quarter earnings below analyst expectations. Earnings per share came in at RMB8.52, compared with an RMB10.72 estimate, while revenue rose 9% year over year to RMB268.95 billion, slightly above the RMB268.34 billion consensus. AI Cloud and Compute Services revenue increased 45% to RMB48.4 billion, and AI-related product revenue reached RMB12.4 billion, marking a 12th consecutive quarter of triple-digit year-over-year growth. The stronger cloud performance contrasted with pressure in China e-commerce, where customer management revenue fell 7% to RMB89.12 billion, or rose 1% on a like-for-like basis excluding the contra revenue effect of a new business development program. Total e-commerce revenue rose 4% to RMB205.9 billion, while adjusted EBITA fell 30% to RMB27.3 billion and its margin narrowed to 10% from 16% as Alibaba increased technology investment. Net income had previously been reported as down 75% year over year to RMB10.4 billion.