Alibaba Group Holding Ltd's stock experienced a significant drop of 10.9% on October 14, 2025. The decline followed the completion of a major exchange offer for US$2.65 billion of its senior unsecured notes. This large-scale debt refinancing was coupled with announcements of significant new investments in AI and cloud infrastructure, including new overseas data centers. While the company is pushing forward with its AI strategy, highlighted by an expanded partnership with Nvidia for humanoid robotics and AI development, investors have reacted negatively. The market's concern appears to be centered on the potential for prolonged margin compression and profitability pressures resulting from this investment-heavy strategy, despite the long-term growth potential in the AI and cloud sectors.