BABA is trading 4% down today at $129.15 as the unveiling of its new Zhenwu M890 AI chip appears to have triggered profit-taking following a sharp AI-driven rally.
- The stock is extending its pullback from the previous session’s close of $134.47, despite the new hardware's potential to improve cloud profit margins.
- Alibaba’s decline significantly outpaces the broader market, which is seeing only slightly weaker index futures in pre-market trading.
- The move suggests a "sell the news" reaction from investors after the company's recent period of outperformance.