Stock Movers Alibaba Rises, Caterpillar Falls, Dell Sinks on Tariff Concerns
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Aug 29, 2025 Alibaba’s shares surged thanks to booming revenue from the AI sector, even amid a profit dip. In contrast, Caterpillar faced significant turbulence with a tariff warning potentially costing $1.8 billion, leading to a drop in their stock. Dell struggled as well, with nearly a 9% decline after underwhelming AI server sales, despite beating earnings expectations. The podcast highlights the contrasting fortunes of these tech giants in today's market.
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Alibaba's AI Revenue Surge
- Alibaba's AI-related revenue surged, driven by post-DeepSeek demand in China.
- The company's cloud sales jumped 26%, calming investor concerns about competitive pressure.
Market Reacts Strongly To AI Cloud Growth
- Alibaba stock jumped about 11.5% after AI and cloud results, marking its biggest move since March.
- Strong cloud growth ties Alibaba directly to China's AI boom and investor enthusiasm.
Tariffs Hit Industrial Earnings Hard
- Caterpillar warned tariffs will cost about $1.8 billion this year and already hit Q2 results.
- Higher-than-expected tariff costs portray a negative macro signal for global industrial demand.