Why Alibaba Group Holding Ltd. (BABA) Went Down On Monday?

We recently published a list of Chinese Stocks Dominate Monday’s 10 Worst Performers. In this article, we are going to take a look at where Alibaba Group Holding Ltd. (NYSE:BABA) stands against other Chinese stocks that performed worst on Monday.

Wall Street’s main indices finished mixed on Monday as investors remained cautious amid the escalating trade tensions globally, with President Donald Trump threatening to slap China anew with a 50-percent tariff if the latter does not withdraw its countermeasure.

The tech-heavy Nasdaq was the sole gainer during the day, up 0.10 percent. In contrast, the Dow Jones declined by 0.91 percent and the S&P 500 dropped by 0.23 percent.

Meanwhile, 10 companies—predominantly Chinese stocks—were sold down as investors moved away to minimize the potential risks from the trade war.

In this article, we have identified Monday’s worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

An e-commerce platform displaying a wide range of products to customers online.

Alibaba Group Holding Ltd. (NYSE:BABA)

Shares of Alibaba Group declined for a fourth straight day on Monday, losing 9.06 percent to end at $105.98 apiece as investors disposed of Chinese stocks to minimize the potential risks from the ongoing US-China trade tensions. In Hong Kong, its share prices were also down by 17.98 percent.

In recent news, the e-commerce giant announced it would expand heavily in Artificial Intelligence over the next three years, more than the amount it spent over the past decade. The announcement came at a time when companies and industries in China are slowly integrating DeepSeek into their operations to support growth.

Wu, however, declined to elaborate on the amount to allocate but emphasized that the primary objective was to pursue AI. Part of its plans would see the launch of a deep reasoning model as it seeks to compete with DeepSeek and OpenAI’s recent models that have reasoning capabilities for solving complex tasks.

Overall, BABA ranks 4th on our list of Chinese stocks that performed worst on Monday. While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.