Alibaba (NYSE:BABA) stock plunged by over 5% on Friday after the Chinese AI and e-commerce giant released its latest earnings. Its New York-listed ADR fell to $117.96, its lowest level since July 31. The retreat could extend further, with the stock now flashing a bearish chart pattern and the company facing looming dilution concerns.
Alibaba to Raise $10 Billion in Share Sale
The new share offering is coming a few days after the company published its earnings report. These numbers showed that its capital expenditure jumped to $10 billion in the June quarter as CPU, server, and GPU prices jumped.
Its revenue jumped by 9% to 268.95 billion yuan ($40 billion), while its operating profit dropped by 75%. Also, it reported a negative free cash flow of 44.7 billion yuan ($6.65 billion).
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