NEW YORK, Jan 17, 2026, 11:06 (EST) — Market closed
- Alibaba shares dropped 3.2% on Friday, ending a brief rally ahead of Monday’s U.S. market holiday.
- This week, the company upgraded its Qwen AI app to manage tasks such as food delivery orders and travel bookings directly within the chat.
- China’s GDP and activity data, set for release Monday, will draw trader attention ahead of U.S. markets reopening Tuesday.
Alibaba Group Holding’s shares on the U.S. market dipped 3.2% Friday, ending at $165.40 after swinging between $163.52 and $170.40. U.S. stock markets will be closed Monday in observance of Martin Luther King Jr. Day, reopening Tuesday. (Nasdaq)
Investors now face two main questions ahead of the next New York session: can Alibaba’s consumer AI push actually boost spending, and will new China data shift sentiment on the economy?
Alibaba is once again serving as a swift gauge of sentiment in China’s tech scene. When broader market trends shift, BABA usually follows suit.
On Thursday, Alibaba announced an upgrade to its Qwen AI app, enabling users to order food delivery and book travel directly within the chat interface. These new features have entered public testing across China. “What we are launching today represents a shift from models that understand to systems that act—deeply connected to real-world services,” said Wu Jia, a vice president at Alibaba Group. (Reuters)
China’s central bank gave a slight boost the same day, trimming rates on certain sector-specific lending tools by 25 basis points — remember, a basis point equals one-hundredth of a percentage point — starting Jan. 19. “After the rate cut on structural tools, it probably won’t take very long to see a full policy rate cut,” said Tianchen Xu, a senior economist at the Economist Intelligence Unit. (Reuters)
China’s next big macro readout is just around the corner. On Monday at 0200 GMT, the country will unveil its full-year and fourth-quarter GDP figures, alongside December activity data, according to a Reuters poll. Economists are bracing for a slowdown as the year closes. Larry Hu, Macquarie’s chief China economist, warned that if exports stumble in 2026, Beijing may need to roll out more stimulus. (Reuters)
Wall Street was closed Monday, so the initial market response will likely emerge in Asia. Investors there will weigh the data alongside currency shifts ahead of the U.S. reopening for trading.
Alibaba bulls are focusing on whether Qwen’s deeper integration with Taobao, Alipay, and the wider ecosystem can boost actual transactions rather than just generating clicks. Skeptics, on the other hand, worry about execution—specifically, whether consumers will commit to using an AI “agent” for daily shopping amid heavy competition.
The setup works both ways. A weaker China report might boost hopes for fresh stimulus, but it would also highlight sluggish demand. Meanwhile, any hint that AI and delivery battles are driving up costs could rekindle concerns about margins.
After the China data, the next major event on the calendar is earnings season. Alibaba is slated to report roughly around Feb. 19, per Nasdaq’s earnings calendar, although the company hasn’t officially confirmed the date. (Nasdaq)
