Alibaba stock fell 9.7% due to $53 billion AI infrastructure investment plan

From Nasdaq: 2025-02-24 12:53:32

Shares of Alibaba (NYSE: BABA) dropped 9.7% as investors reacted to the company’s plans to invest $53 billion in AI infrastructure over the next three years, similar to U.S. tech giants. Alibaba faces skepticism amid market volatility and recent struggles.

Investors reacted to reports of Microsoft canceling data center leases for AI computing. Despite the sell-off, Alibaba’s cloud revenue grew 13% last week. The stock may be volatile as the AI investment unfolds, offering potential growth opportunities in the long run.

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Read more at Nasdaq: Why Alibaba Stock Was Falling Today