3 Things to Know About Alibaba's Least-Profitable Business

Alibaba (NYSE: BABA) is the top e-commerce and cloud company in China. Its core commerce and cloud units generated 85% and 8% of its revenue, respectively, last quarter. Its digital media and entertainment unit accounted for 6% of its revenue, and the remaining 1% came from its innovation initiatives unit.

Only its core commerce division is profitable, and its profits subsidize the losses at its other three divisions. However, the digital media and entertainment unit consistently posts the steepest losses, and many of its fragmented pieces don't complement Alibaba's e-commerce and cloud businesses.

Let's discuss three key things investors should know about Alibaba's least-profitable business.

Source Fool.com