New York, Feb 1, 2026, 11:23 (EST) — Market closed.
- Alibaba’s shares on the U.S. market finished Friday down 2.7%, closing at $169.56.
- China’s newest official activity surveys fell back into contraction, sparking fresh doubts about domestic demand.
- Next week’s China data, U.S. payrolls, and Alibaba’s Feb. 19 earnings are all on investors’ radar as key upcoming catalysts.
Alibaba Group Holding’s shares listed in the U.S. (BABA) dropped 2.7% Friday, closing at $169.56. The stock continued its decline for a second day as investors weighed fresh risks from China and the U.S. Trading volume hit roughly 10.8 million shares. (Nasdaq)
Why it matters now: Chinese demand-sensitive stocks are back under the spotlight after the official manufacturing PMI slipped to 49.3 in January from 50.1, signaling contraction. The non-manufacturing PMI, which tracks services and construction, also dropped to 49.4. National Bureau of Statistics official Huo Lihui pointed to continued weak demand. Nomura’s Ting Lu warned policymakers will need to do “much more” to keep growth above 4.5% this year. Reuters noted a private-sector PMI report is set for Feb. 2. (Reuters)
Another angle is computing power. Reuters reported DeepSeek has conditional approval to buy Nvidia’s H200 chips. It added that ByteDance, Alibaba, and Tencent have been allowed to purchase more than 400,000 H200 chips combined, though the National Development and Reform Commission is still ironing out the conditions. Nvidia CEO Jensen Huang, speaking in Taipei, said he hadn’t heard this and thought China was still working on the license. (Reuters)
Friday saw a pullback in the broader US growth sector. The Nasdaq dropped 0.94%, while the S&P 500 slipped 0.43%. Investors digested President Donald Trump’s pick of Kevin Warsh for Fed chair amid concerns over inflation and a looming government shutdown, Reuters reported. (Reuters)
Alibaba often acts as a stand-in for China’s online consumer spending, reflecting everything from merchants’ advertising budgets to how households spend on non-essential items. When growth falters, the stock behaves less like a typical company share and more like a macroeconomic indicator.
The chip angle is crucial as cloud providers rush to market AI tools, which rely on top-tier processors. Delays, supply crunches, or sluggish deliveries could cap short-term capacity, despite strong demand.
Even with a slower market, competition stays fierce. JD.com and PDD Holdings continue pushing hard on price and delivery speed, making platforms shell out to keep both traffic and merchants.
The risk scenario is straightforward: softer domestic demand hits volumes and dents advertising revenue, while policy shifts throw a wrench into chips, cross-border trade, and investor confidence. For China tech, negative shocks tend to show up in headlines rather than in earnings guidance.
Next week, traders will zero in on China’s data calendar, especially as markets reopen Monday. The U.S. macro agenda is packed, culminating with the January employment report set for Feb. 6 at 8:30 a.m. ET. That report often shakes up yields and influences appetite for growth stocks. (Bureau of Labor Statistics)
Alibaba’s upcoming earnings report is scheduled for Feb. 19, marking a key date for the company.
According to Yahoo Finance’s calendar, investors are set to focus on updates about demand trends, cloud momentum, and spending priorities. (Yahoo)
