Alibaba Reports Weak Earnings Growth Amid AI Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2026
0mins
Source: seekingalpha
- Alibaba Earnings Report: Alibaba's fiscal fourth-quarter results revealed a mere 3% revenue growth, while on a like-for-like basis, excluding disposed businesses, it would have shown an 11% year-over-year increase; however, profitability sharply declined due to increased AI-related spending, compressing adjusted EBITA and net income, indicating significant pressure on earnings in a rapidly evolving market.
- Nebius Revenue Surge: Nebius reported a staggering 684% year-over-year revenue increase to $399 million for the quarter ending March 31, driven by soaring artificial intelligence expenditures, although it posted an adjusted net loss of $100.3 million, its GAAP earnings per share of $2.82 reflect strong market demand and growth potential.
- Two Harbors Rejects Acquisition: Two Harbors Investment's board unanimously rejected UWM Holdings' revised acquisition proposal, citing unresolved “core deficiencies and material risks” from previous proposals, leading to a 2.1% decline in its stock price during premarket trading, showcasing the company's cautious stance on acquisitions.
- Pfizer Drug Approval: Pfizer announced that its hemophilia therapy Hympavzi received marketing authorization from the European Commission to expand its label for use in adolescents, now indicated in all 27 EU member states as well as Iceland, Liechtenstein, and Norway for hemophilia A or B patients aged 12 and older, despite a 0.50% drop in premarket trading, this approval could open new market opportunities for the company.
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Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 26.140
Low
24.00
Averages
28.56
High
35.00
Current: 26.140
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, and others. Its PF-08653944 is an ultra-long-acting fully biased GLP-1 receptor agonist.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pfizer's TALZENNA and XTANDI Show Promising Results in Prostate Cancer Study
- Clinical Trial Results: Pfizer's TALAPRO-3 study revealed that the combination of TALZENNA and XTANDI resulted in a 52% reduction in the risk of radiographic progression or death, with a three-year radiographic progression-free survival (rPFS) rate of 77%, significantly outperforming the placebo group at 56%, highlighting the clinical significance of this combination in treating metastatic prostate cancer.
- Survival Rate Analysis: Although the median overall survival (OS) has not yet been reached, interim results indicate a strong trend towards improved OS with the TALZENNA and XTANDI combination, suggesting potential in extending patient survival, with formal assessment planned for the final analysis.
- Safety Assessment: The safety profile of TALZENNA and XTANDI in the TALAPRO-3 study was consistent with known drug characteristics, with no new safety signals identified; however, 51% of patients experienced anemia as a treatment-emergent adverse event, which was manageable through dose modifications and supportive care, indicating the tolerability of this combination.
- Patient Subgroup Consistency: The rPFS benefit of TALZENNA and XTANDI remained consistent across various patient and disease subgroups, including those with BRCA and non-BRCA gene mutations, with three-year rPFS rates of 77% for BRCA mutation patients and 76% for non-BRCA mutation patients, further supporting the broad applicability of this treatment regimen.
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Analysts' Negative Outlook on Pfizer
- Analyst Rating Discrepancy: Among 29 analysts, only 2 have a strong buy rating for Pfizer, with 9 at buy, while the rest are hold or sell, indicating over 60% of analysts suggest a cautious view, reflecting a negative market perception of the company.
- Stock Price Decline Impact: Pfizer's stock has fallen over 50% from its 2021 peak, leading to investor disappointment regarding its business outlook, particularly with upcoming patent expirations that will significantly impact revenue from key drugs like Eliquis and Vyndaqel.
- New Drug Development Challenges: Pfizer's decision to drop its internally developed GLP-1 drug in the first half of 2025 has hindered its entry into a high-demand drug category, resulting in diminished investor confidence in its future product pipeline and negatively affecting the company's market image.
- Rising Dividend Yield: Despite Pfizer's dividend yield rising to 6.6%, well above the market average of 1.1%, its payout ratio exceeds 100%, yet the company remains committed to supporting dividend payments, demonstrating a determination to maintain shareholder returns during challenging times.
See More
Pfizer Faces Challenges but Long-Term Investment Opportunities Emerge
- Analyst Rating Divergence: Pfizer currently has 29 analysts covering it, with only 2 rating it as a strong buy and 9 as buy, while the rest are hold or sell, indicating that over 60% of analysts suggest a cautious view, reflecting widespread pessimism about its future performance.
- Significant Stock Decline: Pfizer's stock has fallen over 50% from its 2021 peak, indicating investor disappointment in its business outlook, particularly as several key drugs are set to lose patent protection by 2028, which will significantly impact the company's revenue and profits.
- Rising Dividend Yield: Pfizer's dividend yield has climbed to 6.6%, well above the market average of 1.1% and the average for other drug makers at 1.7%, and despite a payout ratio exceeding 100%, the company maintains its commitment to support dividend payments, showcasing its financial resilience during tough times.
- New Drug Development Progress: Although Pfizer had to drop its internally developed GLP-1 drug in the first half of 2025, it acquired a company with a more promising GLP-1 candidate, indicating that Pfizer is actively advancing new vaccines, migraine medications, and oncology drugs, striving to navigate current challenges.
See More
EMA Recommends Targeting XFG Variant for 2026/2027 Vaccines
- Vaccine Development Focus: The European Medicines Agency (EMA) has recommended that vaccine manufacturers target the SARS-CoV-2 variant XFG for the 2026/2027 immunization campaign, reflecting a proactive approach to current epidemiological trends aimed at enhancing vaccine efficacy.
- Variant Prevalence: As of October 2025, XFG accounted for 74% of infections, demonstrating its dominance among JN.1 subvariants, and the EMA's recommendation aims to address this prevalence to ensure vaccines are both targeted and effective.
- International Collaboration: The EMA made its recommendation in consultation with the World Health Organization and international partners, ensuring that the perspectives of vaccine manufacturers were considered, which reflects the EMA's global outlook and collaborative spirit in vaccine development.
- FDA Support for Adjustment: An FDA advisory panel voted 8-0 to support adjusting the next round of COVID vaccines to reflect the XFG variant, indicating that this variant made up over 50% of U.S. cases, further underscoring the necessity for vaccine adjustments.
See More
Regulatory Approvals and Collaborations in Biotech Sector
- FDA Approval for AZN: AstraZeneca (AZN) secured FDA approval for the IMFINZI + BCG combination in high-risk non-muscle-invasive bladder cancer, supported by Phase 3 POTOMAC data showing a 32% reduction in recurrence or death, enhancing its competitive edge in oncology.
- JNJ TREMFYA Label Expansion: Johnson & Johnson (JNJ) received FDA approval to add structural joint-damage inhibition data to the TREMFYA label for active psoriatic arthritis, confirming its unique position in first-line treatment with no new safety signals, reinforcing its market leadership.
- LINZESS Approved for Children: Ironwood Pharmaceuticals (IRWD) gained FDA approval for LINZESS to treat functional constipation in children aged 2-5, based on a 12-week Phase 3 trial showing significant improvement in spontaneous bowel movements, expanding its pediatric market influence.
- AbbVie's DECNUPAZ Approval: AbbVie (ABBV) received FDA approval for DECNUPAZ to treat ultra-rare blood cancer BPDCN, supported by Phase 1 data showing a 69.7% composite complete response rate and a median duration of 9.7 months, marking a significant innovation in hematologic oncology.
See More
FDA Proposes Reducing Animal Studies for Cancer Drugs
- Reduction in Animal Testing: The FDA has proposed to reduce animal studies in cancer drug development by recommending only rodent trials or replacing three-month non-human primate studies with evidence-based risk assessments, thereby expediting the drug development process.
- Shortening R&D Timelines: The agency noted that current R&D timelines extend 10 to 12 years, and this proposal aims to shorten that duration, enhancing the efficiency of bringing new therapies to market to meet urgent healthcare demands.
- Public Comment Period: The draft guidance is open for public comments until July 30, as the FDA seeks to refine this policy through stakeholder feedback, further promoting regulatory pathways for drug development.
- Commitment to Reduce Animal Testing: FDA's oncology head, Angelo de Claro, emphasized that this guidance not only supports the commitment to expedite regulatory pathways but also fulfills the agency's promise to reduce the use of animal testing in drug development, reflecting a dual focus on ethics and science.
See More
Pfizer's TALZENNA and XTANDI Show Promising Results in Prostate Cancer Study
- Clinical Trial Results: Pfizer's TALAPRO-3 study revealed that the combination of TALZENNA and XTANDI resulted in a 52% reduction in the risk of radiographic progression or death, with a three-year radiographic progression-free survival (rPFS) rate of 77%, significantly outperforming the placebo group at 56%, highlighting the clinical significance of this combination in treating metastatic prostate cancer.
- Survival Rate Analysis: Although the median overall survival (OS) has not yet been reached, interim results indicate a strong trend towards improved OS with the TALZENNA and XTANDI combination, suggesting potential in extending patient survival, with formal assessment planned for the final analysis.
- Safety Assessment: The safety profile of TALZENNA and XTANDI in the TALAPRO-3 study was consistent with known drug characteristics, with no new safety signals identified; however, 51% of patients experienced anemia as a treatment-emergent adverse event, which was manageable through dose modifications and supportive care, indicating the tolerability of this combination.
- Patient Subgroup Consistency: The rPFS benefit of TALZENNA and XTANDI remained consistent across various patient and disease subgroups, including those with BRCA and non-BRCA gene mutations, with three-year rPFS rates of 77% for BRCA mutation patients and 76% for non-BRCA mutation patients, further supporting the broad applicability of this treatment regimen.
See More
Analysts' Negative Outlook on Pfizer
- Analyst Rating Discrepancy: Among 29 analysts, only 2 have a strong buy rating for Pfizer, with 9 at buy, while the rest are hold or sell, indicating over 60% of analysts suggest a cautious view, reflecting a negative market perception of the company.
- Stock Price Decline Impact: Pfizer's stock has fallen over 50% from its 2021 peak, leading to investor disappointment regarding its business outlook, particularly with upcoming patent expirations that will significantly impact revenue from key drugs like Eliquis and Vyndaqel.
- New Drug Development Challenges: Pfizer's decision to drop its internally developed GLP-1 drug in the first half of 2025 has hindered its entry into a high-demand drug category, resulting in diminished investor confidence in its future product pipeline and negatively affecting the company's market image.
- Rising Dividend Yield: Despite Pfizer's dividend yield rising to 6.6%, well above the market average of 1.1%, its payout ratio exceeds 100%, yet the company remains committed to supporting dividend payments, demonstrating a determination to maintain shareholder returns during challenging times.
See More
Pfizer Faces Challenges but Long-Term Investment Opportunities Emerge
- Analyst Rating Divergence: Pfizer currently has 29 analysts covering it, with only 2 rating it as a strong buy and 9 as buy, while the rest are hold or sell, indicating that over 60% of analysts suggest a cautious view, reflecting widespread pessimism about its future performance.
- Significant Stock Decline: Pfizer's stock has fallen over 50% from its 2021 peak, indicating investor disappointment in its business outlook, particularly as several key drugs are set to lose patent protection by 2028, which will significantly impact the company's revenue and profits.
- Rising Dividend Yield: Pfizer's dividend yield has climbed to 6.6%, well above the market average of 1.1% and the average for other drug makers at 1.7%, and despite a payout ratio exceeding 100%, the company maintains its commitment to support dividend payments, showcasing its financial resilience during tough times.
- New Drug Development Progress: Although Pfizer had to drop its internally developed GLP-1 drug in the first half of 2025, it acquired a company with a more promising GLP-1 candidate, indicating that Pfizer is actively advancing new vaccines, migraine medications, and oncology drugs, striving to navigate current challenges.
See More
EMA Recommends Targeting XFG Variant for 2026/2027 Vaccines
- Vaccine Development Focus: The European Medicines Agency (EMA) has recommended that vaccine manufacturers target the SARS-CoV-2 variant XFG for the 2026/2027 immunization campaign, reflecting a proactive approach to current epidemiological trends aimed at enhancing vaccine efficacy.
- Variant Prevalence: As of October 2025, XFG accounted for 74% of infections, demonstrating its dominance among JN.1 subvariants, and the EMA's recommendation aims to address this prevalence to ensure vaccines are both targeted and effective.
- International Collaboration: The EMA made its recommendation in consultation with the World Health Organization and international partners, ensuring that the perspectives of vaccine manufacturers were considered, which reflects the EMA's global outlook and collaborative spirit in vaccine development.
- FDA Support for Adjustment: An FDA advisory panel voted 8-0 to support adjusting the next round of COVID vaccines to reflect the XFG variant, indicating that this variant made up over 50% of U.S. cases, further underscoring the necessity for vaccine adjustments.
See More
Regulatory Approvals and Collaborations in Biotech Sector
- FDA Approval for AZN: AstraZeneca (AZN) secured FDA approval for the IMFINZI + BCG combination in high-risk non-muscle-invasive bladder cancer, supported by Phase 3 POTOMAC data showing a 32% reduction in recurrence or death, enhancing its competitive edge in oncology.
- JNJ TREMFYA Label Expansion: Johnson & Johnson (JNJ) received FDA approval to add structural joint-damage inhibition data to the TREMFYA label for active psoriatic arthritis, confirming its unique position in first-line treatment with no new safety signals, reinforcing its market leadership.
- LINZESS Approved for Children: Ironwood Pharmaceuticals (IRWD) gained FDA approval for LINZESS to treat functional constipation in children aged 2-5, based on a 12-week Phase 3 trial showing significant improvement in spontaneous bowel movements, expanding its pediatric market influence.
- AbbVie's DECNUPAZ Approval: AbbVie (ABBV) received FDA approval for DECNUPAZ to treat ultra-rare blood cancer BPDCN, supported by Phase 1 data showing a 69.7% composite complete response rate and a median duration of 9.7 months, marking a significant innovation in hematologic oncology.
See More
FDA Proposes Reducing Animal Studies for Cancer Drugs
- Reduction in Animal Testing: The FDA has proposed to reduce animal studies in cancer drug development by recommending only rodent trials or replacing three-month non-human primate studies with evidence-based risk assessments, thereby expediting the drug development process.
- Shortening R&D Timelines: The agency noted that current R&D timelines extend 10 to 12 years, and this proposal aims to shorten that duration, enhancing the efficiency of bringing new therapies to market to meet urgent healthcare demands.
- Public Comment Period: The draft guidance is open for public comments until July 30, as the FDA seeks to refine this policy through stakeholder feedback, further promoting regulatory pathways for drug development.
- Commitment to Reduce Animal Testing: FDA's oncology head, Angelo de Claro, emphasized that this guidance not only supports the commitment to expedite regulatory pathways but also fulfills the agency's promise to reduce the use of animal testing in drug development, reflecting a dual focus on ethics and science.
See More
