Alibaba’s Hong Kong-listed shares (9988.HK) fell 4.26% on Friday. This decline erased approximately HK$94 billion in market value. The drop ended a recent rally sparked by the launch of the company's new AI model.
A broader technology sector sell-off pressured the stock as investors weighed high AI development costs. Weak earnings from U.S. tech giants intensified concerns over heavy capital expenditures. Investors are shifting focus from growth potential toward cash-flow validation.
Mainland Chinese investors drove a substantial single-day net outflow through heavy selling. New U.S. tariffs on trading partners, including China, further dampened market sentiment. The European Union recently fined Alibaba’s AliExpress platform €550 million.