Why Did Alibaba (BABA) Drop 3.08% Despite 56% Yearly Surge?

On April 3, 2025, Baba experienced a 3.08% drop in pre-market trading.

Joule Financial's Quint Tatro highlighted Alibaba (BABA) as an excellent choice for investors seeking portfolio hedging against tariff volatility. Tatro, the founder and CEO of the investment firm, shared his insights on the Chinese e-commerce giant and other market hot stocks during an appearance on CNBC's Power Lunch.

Tatro emphasized that despite Alibaba's strong performance this year, with a stock price surge of over 56%, the company remains a compelling buy due to its "anti-tariff" characteristics. He noted that Alibaba's revenue is predominantly derived from the Chinese domestic market, with less than 5% coming from the United States, making it largely immune to tariff policies.

Additionally, Tatro pointed out that Alibaba's fundamentals are "remarkable," with the company holding $67 billion in cash and planning to invest over $50 billion in artificial intelligence over the next three years. This strategic investment is expected to further bolster Alibaba's competitive edge and drive future growth.