Alibaba Group's recent market performance has been lackluster, with shares experiencing a decline over consecutive trading days. On October 15, Alibaba's stock plummeted by 5.54%, contributing to a cumulative two-day drop of 7.54%. This downturn in share price is reflective of ongoing market uncertainties and investor sentiment.

Amidst these developments, Alibaba has faced significant selling pressure from northbound funds, with data revealing a net sell of HKD 2.09 billion. This indicates investor caution in light of current macroeconomic conditions and potential concerns over the upcoming earnings reports.

Despite the current market challenges, Alibaba is set to be included in the Hang Seng Stock Connect Index, effective after October 25. This inclusion reflects its compliance with fast-entry requirements and positions the company for potential long-term investor confidence and interest from mainland investors.

Looking ahead, Alibaba is poised to release its 2025 fiscal year second-quarter earnings. Analysts anticipate a 6% year-over-year revenue growth to RMB 2,383 billion, albeit with a projected 8% decline in non-GAAP net income to RMB 368 billion. These expectations underscore the competitive landscape and economic pressures impacting profitability.

Moreover, the company's initiatives in the upcoming Double 11 shopping festival could be pivotal. With increased investment in promotions, including RMB 300 billion in consumer vouchers and discounts, Alibaba aims to boost sales performance and market share during this critical retail period. Analysts watching these developments expect these strategies to bolster merchant confidence and lay the groundwork for improved commercialization rates in the coming quarters.