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Alibaba Hit Twice — Down 8.6%, Then HK$80 Billion Drained. Are These the Same Story?

Alibaba took two hits with different causes. Earnings first: adjusted net profit −38%, GAAP −75%, the U.S. listing down 8.57%, with JPMorgan still Overweight at a $210 target. Then dilution: an HK$80bn (~$10.2bn) placement outside the U.S. on August 23, its first since the 2019 HK listing, proceeds all to AI. Hong Kong shares fell 10.08% intraday, Tencent −3.72%, Xiaomi −4.41% as funds sold to make room. Against capex +75% and cloud revenue +45%, the dividing line is whether that HK$80bn becomes cloud revenue or depreciation. Buy the dip, or rotate to Tencent, which is not diluting?

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