Top mover alert: Alibaba sinks 10% on record USD10 billion share placement
❗ $BABA-W(09988)$ shares are down 10.5% to HKD110.10 as of 957AM after announcing Hong Kong's largest share placement on record
Alibaba sold 710 million shares at HKD112.70 each, a discount of 3.6% to the closing price of Alibaba’s ADR on Friday and 8.4% below Friday's Hong Kong close
💰The company has sold off assets and pledged to spend more than 380 billion yuan over three years toward everything from chips and data centers to large-language model development. Its flagship Qwen offering is now the world’s most popular model family (Bloomberg)
📢In its earnings announcement last week, Alibaba has spent almost USD 10 billion in its quarterly AI investment in a bid to challenge Anthropic and OpenAI, causing profits to plunge more than 75% in the June quarter
Alibaba shares have clawed back some losses and is trading 8.3% lower to HKD112.30 as of 1030AM
✳✴Trending Alibaba call $Alibaba MB eCW270202(MHGW.SI)$ (https://warrants.com.sg/tools/livematrix/MHGW) is down 35% to SGD 0.026 while trending put warrant $Alibaba MB ePW261005(JCJW.SI)$ (https://warrants.com.sg/tools/livematrix/JCJW) is up 84.2% to SGD 0.035
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