Alibaba Stock Slumps in Hong Kong After $10.2 Billion Share Placement to Fund AI
Alibaba said it will use the proceeds to expand AI infrastructure after profit fell 75% in the June quarter, weighing on shares.
- On Monday, Alibaba shares plunged as much as 10% in Hong Kong after the company priced an 80 billion Hong Kong dollar placement of newly issued shares.
- The share placement, expected to close Wednesday, follows a 75% profit drop for the June-quarter as capital expenditure on AI infrastructure weighed on recent results.
- Alibaba plans to use all net proceeds to expand its full-stack AI capabilities, building on its commitment to invest 380 billion yuan in cloud and AI infrastructure over three years.
- Vey-Sern Ling, senior equity advisor at UBP, told CNBC last week that Alibaba is "well positioned to chase that growth," citing its cloud computing arm and strong AI model.
- Chinese tech peers are also ramping up infrastructure spending, with Tencent reporting capital expenditure rose 65% to 52.8 billion yuan in the June-quarter to monetize AI models.
18 Articles
18 Articles
Alibaba's shares collapsed by more than 10% at the opening of the Hong Kong Stock Exchange after the Chinese e-commerce giant set the placement price of 710 million new shares at $112.70 per share in Hong Kong, for a total value of ... (ANSA)
Global Market: Alibaba shares slide after $10.2 billion share placement to fund AI expansion
Alibaba shares fell as much as 10% after the company launched a $10.2 billion share placement to fund AI expansion. The discounted offering raised dilution concerns, while heavy AI spending and a 75% profit decline intensified investor scrutiny over returns. Alibaba plans major infrastructure investments as competition in AI accelerates.
Alibaba launches HK$80 billion share placement
Shares of Alibaba fell eight percent to HK$113.00 soon after the stock market opened on Monday morning, and hours after the company announced the launch of an HK$80-billion, or US$10.2 billion, share placement to fund artificial intelligence-related development. The shares closed at HK$123.00 on Friday. The share placement by the Chinese e-commerce and cloud computing giant would mark the largest-ever primary follow-on offering by a Hong Kong-l…
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