Alibaba shares fall as investors weigh China demand and competition
Diamond Hill International Fund said Alibaba faced concerns over China’s consumer recovery, e-commerce competition and cloud growth during the second quarter.
Alibaba shares declined during the second quarter of 2026 as investors remained concerned about the pace of China’s consumer recovery, competitive pressure in e-commerce and the outlook for cloud growth, according to Diamond Hill International Fund.
The fund, part of First Eagle Investment Management, said broader weakness in Chinese equities also weighed on the stock. Its assessment came despite Alibaba’s continued investment in artificial intelligence.
Alibaba operates across cloud computing, e-commerce and artificial intelligence. The company’s shares closed at US$113.24 on 4 September, according to the source. They had fallen 14.42% over the preceding month and 19.80% over 52 weeks.
The source reported that 97 hedge fund portfolios held Alibaba at the end of the second quarter, down from 102 in the previous quarter. Alibaba ranked 30th among 40 popular hedge-fund stocks heading into 2026.
Diamond Hill International Fund returned 7.76% in the quarter, compared with a 14.49% gain for the MSCI ACWI ex USA Index. The fund said international equities were supported by AI-related semiconductor companies, while Chinese markets declined.
