On May 22, Alibaba fell 3.1% in pre-market trading, trading at $126.75/share, with trading volume of approximately $18.31 million. The stock faced intensified selling pressure as multiple negative catalysts converged, including the disclosure of renowned investor Duan Yongping's complete exit from Alibaba and ongoing concerns about near-term profitability.
According to the latest 13F filing, Duan Yongping's H&H International Investment fully liquidated its Alibaba position in Q1, marking the third consecutive quarter of reducing exposure. The fund's top holdings now include Apple, Berkshire Hathaway, NVIDIA, PDD Holdings, and Tesla — with Alibaba entirely absent. Duan has publicly stated he can no longer clearly assess Alibaba's cash flow dynamics amid the AI and e-commerce spending battle.
The selling pressure compounds Alibaba's FY2026 Q4 earnings report, which revealed a sharp profit decline. CEO Wu Yongming signaled that capital expenditure over the next three years will far exceed the previously anticipated 380 billion yuan. Goldman Sachs has already raised its FY2026-2028 cumulative capex estimate to 460 billion yuan. Analysts note that elevated depreciation costs and investment outflows will continue suppressing profits potentially through FY2028.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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