---
title: "Alibaba Stock (BABA) Sell-Off May Have Further to Run"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/297189596.md"
description: "Alibaba (BABA) stock faces continued downward pressure following a $10.2 billion equity placement, which introduces significant dilution concerns. Despite a 9% revenue rise to $39.64 billion, adjusted EBITA fell 30%, EPS dropped 42%, and net income collapsed 75%. High capital expenditures led to a $6.58 billion free cash flow outflow. With slowing commerce and unproven AI economics, the author remains bearish on the stock."
datetime: "2026-08-27T12:48:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/297189596.md)
  - [en](https://longbridge.com/en/news/297189596.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/297189596.md)
generator: "portal-rs"
---

# Alibaba Stock (BABA) Sell-Off May Have Further to Run

Alibaba (BABA) stock sell-off may have further to run. The ADR fell sharply last Friday, with losses extended further Monday morning after the company unveiled a $10.2 billion equity placement. Fiscal first-quarter revenue rose 9% to $39.64 billion, yet adjusted EBITA fell 30%.

Adjusted earnings per share (EPS) per ADR also dropped 42%, and net income collapsed 75%. Yes, its 45% cloud growth sounds impressive. However, nearly $10 billion of quarterly capital expenditure pushed free cash flow to a $6.58 billion outflow. With commerce slowing and artificial intelligence (AI) economics still unproven, I remain bearish despite the lower share price. This is especially true since current holders must absorb any ongoing dilution.

For context, Alibaba is a Chinese multinational conglomerate operating across e-commerce, cloud computing, digital media, and fintech, though it remains best known for its flagship e-commerce platforms.

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## Related News & Research

- [Alibaba Expands Equity Base with HK$112.7 Placement of 710 Million New Shares](https://longbridge.com/en/news/298029562.md)
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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**