Alibaba Growth Fails to Impress in Dour Note for China Tech (2)

Alibaba Group Holding Ltd.’s quarterly revenue grew a disappointing 7%, reflecting a persistent Chinese consumer malaise that may dog the online commerce leader’s big pivot toward AI.

The company reported sales of 236.5 billion yuan ($32.8 billion) for the March quarter, versus an average estimate of 237.9 billion yuan. Net income almost quadrupled, though that was partly because of gains from equity investments. Its American depositary receipts fell as much as 7.8% after markets opened in New York on Thursday.

Alibaba, a barometer of the Chinese consumer economy because of its sprawl, posted better-than-expected growth in domestic retail after ...