Alibaba Shares Slide After $10.2 Billion Discounted Equity Raise and AI Capex Pivot

Alibaba's shares were falling hard as Blockchain.News reported, with the stock down 5.58% over 24 hours in a range from $120.81 to $111.58, roughly 41% below a 52-week high of $192.67. The immediate trigger was a $10.2 billion equity raise priced at a discount, issuing 710 million new shares, which Blockchain.News described as dividing Wall Street; Alibaba also reported holding $30.7 billion in net cash, and chairman Joe Tsai and CEO Eddie Wu bought a combined HK$120 million of stock in the open market, with the institutional placement reportedly covered nearly three times over. Blockchain.News reported the company is not a broken business, pointing to Alibaba Cloud external revenue up 45% year-over-year, its fastest rate in 22 quarters, and AI-related product revenue of RMB 12.4 billion, the twelfth consecutive quarter of triple-digit growth and about 35% of external revenue. Two days after that first report, Blockchain.News said Wu announced at the Apsara Conference in Hangzhou that Alibaba Cloud is targeting more than 20 gigawatts of global data center capacity by 2032 and that the Zhenwu V900 chip from the company's T-Head unit is being pulled forward to Q1 mass production, two quarters ahead of the May timeline, with Zhenwu external customers said to have grown from 400 to 650+ in four months. By a third report, the stock sat at $110.82, below its 7-day SMA of $113.77, its 50-day SMA of $117.58 and an EMA cluster between $112.40 and $113.28, and Blockchain.News also referred to lawsuit noise around the stock without detailing the claims. The figures in the set do not line up on how the stock has performed this year, and no source other than Blockchain.News covers any of it, so the operational and technical picture rests on a single outlet.