Alibaba Stock Slides Tuesday: What's Happening?

Shares of Alibaba Group (NASDAQ:BABA) are trading lower today after one of China’s top governmental bodies pledged to make domestic demand an economic priority.

• Alibaba stock is facing resistance. Why are BABA shares declining?

What To Know: China’s Politburo has pledged to expand demand domestically and be more proactive about boosting the economy with policy next year, per Reuters.

The move suggests that consumer demand in China may be weaker than expected currently, which may be impacting Chinese stocks on Tuesday. The stock is falling alongside Baidu and Bilibili, which are both US-listed Chinese companies.

The Financial Times also reported Tuesday that China may “limit access” to the recently reinstated Nvidia H200 chips, despite President Donald Trump’s decision to allow the exporting of these chips to China, which appears to be adding to investor concerns.

Alibaba has announced several AI partnerships recently, including becoming the cloud infrastructure provider for Ryt Bank and formalizing a new collaboration with the energy subsidiary of Malaysia’s national carmaker. The company also made several AI commitments to Hong Kong, including an initiative that offers newly registered businesses and developers three-month free access to Alibaba's advanced AI models, including large language model Qwen and video generation model Wan. 

Last week, the company said its flagship Qwen app achieved 18.34 million monthly active users in November, a 149.03% increase from October.

BABA Price Action: Alibaba shares were down 1.59%, trading at $155.57 at the time of publication, according to Benzinga Pro.

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