On July 24, Alibaba declined 3.03% overnight, trading at $110.7/share, with turnover of $24.18 million. The decline came amid broad selling pressure on global technology stocks triggered by escalating concerns over AI capital expenditure sustainability.

On the news front, Alphabet reported Q2 capital expenditure of $44.9 billion, resulting in the company's first-ever negative free cash flow of -$5.9 billion. The company further raised its full-year capex guidance to $195-205 billion, intensifying investor fears that AI investment is expanding too rapidly relative to monetization timelines. The US Magnificent Seven tech stocks collectively declined, dragging Chinese internet names lower. OpenAI was also reported to have raised its pre-2030 compute spending forecast from approximately $600 billion to $750 billion.

Adding to the pressure, southbound capital has recently been net selling Alibaba, with net outflows of HK$1.096 billion recorded on July 23. Public fund data showed a significant reduction in Hong Kong internet stock exposure during Q2, with港股 allocation dropping from 34.7% to 23.3%. The market remains concerned that massive AI capex will erode tech sector profitability and compress valuations.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)