New York, Jan 10, 2026, 11:40 EST — The market has closed.
- Alibaba’s U.S.-listed shares dropped 2.3% on Friday, erasing some of Thursday’s gains
- China announced plans to probe competition among food-delivery platforms, including Alibaba
- Traders are eyeing China’s regulatory moves, updates on AI chip supplies, and Alibaba’s upcoming earnings report due Feb. 19
Alibaba Group Holding Ltd’s shares on the U.S. market slipped 2.3% to $150.96 on Friday, pulling back following a 5.7% jump the previous day.
The dip followed China’s announcement of a probe into aggressive competition among food-delivery platforms run by tech giants like Meituan and Alibaba. The move targets subsidy-fueled price wars. The market regulator flagged “involution-style” competition — a Chinese phrase for cutthroat rivalry that slashes profits — highlighting “instant retail” delivery within an hour as a main battleground. Reuters
Why it matters now: Alibaba is pushing harder on faster delivery and local services to hold its ground as consumer growth slows. Cutting back on subsidies and discounts might dent volumes, but it also tightens the marketing strategies that have kept both merchants and shoppers engaged on its platforms.
Alibaba shares are also reacting to developments in AI hardware. According to Reuters, Nvidia is now demanding full upfront payment from Chinese customers for its H200 AI chips, amid uncertainty over Beijing’s regulatory approval. Some tech companies have been told to hold off on orders as authorities consider domestic chip policies. Nvidia CEO Jensen Huang described demand as “quite high” and said the firm has “fired up our supply chain” to boost output.
Morgan Stanley’s Gary Yu lowered his Alibaba price target to $180 from $200 on Thursday but kept an Overweight rating. He noted that “core e-comm businesses have started to worsen, due to weak consumption.” Yu highlighted that cloud momentum still backs Alibaba’s standing as “China’s Best AI Enabler,” though he warned that rising AI-related expenses could weigh on adjusted EBITA — operating profit before interest, tax, and amortisation. Investing.com
Alibaba’s AI ties keep it in the mix as deal rumors swirl. MiniMax, a hot “AI tiger” startup from China, surged more than 100% in its Hong Kong debut Friday. Reuters reported Alibaba counted among its cornerstone investors. Omdia analyst Lian Jye Su noted the startup’s consumer angle “appealed more” to investors chasing high-growth opportunities. Reuters
Alibaba’s shares fell Friday, pushing weekly volume sharply higher but keeping the stock well under its October highs. The moves appear driven as much by headlines as by company fundamentals. MarketWatch reported that Friday’s trading volume hit roughly 11.4 million shares.
The broader market showed strength Friday as U.S. stocks hit new highs despite a mixed jobs report. The Nasdaq climbed 0.8%, while the S&P 500 gained 0.6%, the Associated Press reported.
Alibaba’s main risk lies squarely in China. Should the investigation lead to stricter subsidy caps or tougher compliance rules, the company might face a tough choice: either curb its delivery expansion or accept weaker margins in the near term. On top of that, any hold-up in importing advanced AI chips could throw a wrench into the cloud growth narrative favored by bulls.
Risk appetite faces its next big test with U.S. consumer inflation data due Tuesday, Jan. 13. The Labor Department will drop the CPI report for December 2025 at 8:30 a.m. ET.
Alibaba’s next major event is its earnings report. Nasdaq currently has the date set for Feb. 19, but that could shift if the company updates its schedule. Investors want to hear about trends in China’s consumer demand, how aggressive delivery subsidies remain, and progress in AI and cloud investments.
