Alibaba (BABA) Plunges 3.31% on Cloud, AI Spending Fears

On April 3, 2025, Alibaba's stock experienced a significant drop of 3.31% in pre-market trading, reflecting investor concerns and market sentiment.

Investors have expressed apprehension over Alibaba's substantial spending plans in cloud computing and artificial intelligence (AI). This has led to a decline in the company's stock price as investors question the financial viability and potential returns of these investments.

Despite a 52% surge in Alibaba's stock this year, some analysts believe the stock remains undervalued, suggesting there is still room for further gains. This optimistic view contrasts with the recent market downturn, where Alibaba's stock has been affected by broader market corrections in the tech sector.

Additionally, the company's stock has been downgraded by some analysts, who have revised their ratings from "buy" to "hold." This shift in sentiment indicates a more cautious approach towards Alibaba's future performance, potentially influencing investor decisions and contributing to the stock's decline.