---
title: "Alibaba Stock Pulls Back: Why Chairman Joe Tsai’s Bold New AI Gambit Has Wall Street Hesitant"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290465193.md"
description: "Alibaba (BABA) stock dipped over 1% due to geopolitical tensions, AI spending concerns, and a broader decline in Chinese equities. Despite Chairman Joe Tsai's announcement of a massive 'all-in' $50 trillion AI strategy unveiled at VivaTech, investors remain hesitant. The stock underperformed the market, trading down 1.52% to $105.45, as Wall Street treats China mega-cap tech as high-risk despite optimistic long-term earnings estimates."
datetime: "2026-06-22T17:19:24.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290465193.md)
  - [en](https://longbridge.com/en/news/290465193.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290465193.md)
---

# Alibaba Stock Pulls Back: Why Chairman Joe Tsai’s Bold New AI Gambit Has Wall Street Hesitant

**Alibaba Group Holding Ltd. – ADR** (NYSE:BABA) stock fell over 1% on Monday as investors took profits amid geopolitical tensions, AI spending concerns and a broader decline in Chinese stocks.

Chairman **Joe Tsai** is doubling down on an "all in" AI strategy, SCMP reported last Friday.

**• Alibaba stock is showing weakness. Why is BABA stock trading lower?**

At VivaTech in Paris, Tsai laid out Alibaba’s "full-stack" AI plan spanning chips, cloud infrastructure, foundation models and consumer applications, arguing AI could ultimately represent a $50 trillion total addressable market.

He also framed the bet as intentionally broad — investing across the value chain now and "figure out the winners later," rather than picking a single AI segment.

With the Nasdaq down 0.58% while the Russell 2000 is up 0.84%, Monday’s tape is mixed, and Alibaba is underperforming even as six sectors are advancing. That divergence suggests the market is still treating China mega-cap tech as a higher-risk pocket despite upbeat AI messaging.

## **Earnings & Analyst Outlook**

Looking further out, the next major catalyst for the stock arrives with the Aug. 28 (estimated) earnings report.

-   **EPS Estimate**: $2.51 (Up from $2.06 year-over-year)
-   **Revenue Estimate**: $38.72 billion (Up from $34.57 billion YoY)
-   **Valuation**: P/E of 16.4x (Suggests fair valuation relative to peers)

## **Top ETF Exposure**

-   **Avantis Emerging Markets Equity ETF** (NYSE:AVEM): 1.12% Weight
-   **Avantis Responsible Emerging Markets Equity ETF** (NYSE:AVSE): 1.39% Weight
-   **SPDR NYSE Technology ETF** (NYSE:XNTK): 3.53% Weight

**Significance:** Because Alibaba carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

## **BABA Price Action**

**BABA Stock Price Activity:** Alibaba shares were down 1.52% at $105.45 at the time of publication on Monday, according to Benzinga Pro data.

_Photo: Shutterstock_

**Read Also: Alibaba Stock Falls After Chinese Regulator Warnings, US Pentagon Listing**

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