On September 23, Alibaba fell 3.74% in regular trading, trading at $111.945/share, with turnover of $1.61 billion. The decline was primarily triggered by shareholder meeting resolutions authorizing potential equity dilution, compounded by profit-taking following the prior session's rally.
According to company filings, the annual general meeting held on September 22 passed all proposed resolutions, granting the board authority to issue up to 10% of outstanding ordinary shares — approximately 1.989 billion shares — at a discount of up to 10% to the benchmark price. A separate resolution authorized buybacks of up to the same amount. Market participants expressed concern over the potential dilutive impact of the issuance authorization. Additionally, the company recently sold approximately $500 million in ZTO Express ADRs at a 4.5% discount through block trades, continuing its systematic divestiture of non-core assets.
The pullback also reflected profit-taking after Alibaba surged over 3% in the prior session, driven by the Yunqi Conference where the company unveiled its full-stack AI strategy, the next-generation Zhenwu V900 chip, a 20GW global data center expansion plan, and three new Qwen-branded AI hardware products. Multiple investment banks including Citi, Morgan Stanley, Bank of America, and Nomura reiterated Buy ratings with targets ranging from $175 to $190.
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