Alibaba Group Holding Ltd. (BABA) shares plummeted 6.13% in pre-market trading on Friday, following the release of its fiscal fourth-quarter results that fell short of analyst expectations. The Chinese e-commerce giant reported slower revenue growth and missed both earnings and revenue estimates, sparking concerns among investors about the company's future growth prospects.

According to the earnings report, Alibaba's revenue grew by 7% year-on-year to $32.58 billion, failing to meet the analyst consensus estimate of $33.08 billion. While the company's adjusted earnings per ADS of $1.73 beat expectations, the overall performance was overshadowed by the revenue miss and decelerating growth rates across several key business segments.

Adding to the negative sentiment, notable hedge funds have recently turned bearish on Alibaba and other Chinese stocks. Michael Burry's Scion Asset Management, known for its prescient bets during the 2008 financial crisis, has opened bearish put positions on Alibaba shares. Similarly, Soros Fund Management, led by billionaire investor George Soros, has completely dissolved its stake in the company. These moves by high-profile investors have further intensified the selling pressure on Alibaba's stock.

The combination of disappointing financial results and the bearish stance adopted by influential hedge funds has led to a significant drop in investor confidence, resulting in the sharp decline in Alibaba's share price. As the company faces challenges in maintaining its growth trajectory and navigating an increasingly complex regulatory environment in China, investors will be closely monitoring Alibaba's future performance and strategic initiatives.