Alibaba’s 3.15% Drop Amid 49% Volume Soar Ranks 28th in Market Activity

On October 7, 2025, Alibaba Group (BABA) closed with a 3.15% decline, despite a surge in trading activity. The stock recorded a trading volume of $3.08 billion, a 49.29% increase from the previous day, ranking 28th in market activity. The drop followed a mixed bag of regulatory and market sentiment dynamics, as analysts noted heightened scrutiny over the company’s strategic pivot toward cloud computing and AI-driven innovations.

Recent developments highlighted regulatory challenges, with reports indicating intensified antitrust investigations into its e-commerce practices. While the company has historically weathered such pressures, investors appeared cautious as new compliance costs emerged. Additionally, market participants observed a divergence in earnings expectations, with some analysts downgrading revenue forecasts for the fiscal year amid slower-than-expected growth in core retail segments.

Technical indicators showed short-term volatility, with the stock testing key support levels. Positioning data revealed a reduction in open interest among speculative traders, suggesting a potential consolidation phase. However, long-term holders maintained confidence in the company’s restructuring efforts, particularly in logistics and international expansion projects.

To run this back-test rigorously, I need to pin down a few practical details: 1. Universe: Which market(s) should the “top-500-by-volume” be selected from? (e.g., all U.S. listed stocks, only NYSE + NASDAQ, a specific country, etc.) 2. Re-balancing mechanics: Do we buy the 500 names at the close and liquidate them at the next day’s close (i.e., 1-day holding period), or use open prices? Equal-weight each position, correct? 3. Frictions: Any commission or slippage assumptions you’d like included? Once those points are confirmed, I can fetch the historical daily volume data, build the day-by-day trading lists, and run the back-test from 2022-01-03 through today.