PANews reported on May 21 that Alibaba (NYSE: BABA) shares fell nearly 5% in a single day after releasing its FY2026 Q4 financial report on May 15. The report showed a slight increase in revenue, but a significant deterioration in profitability. Non-GAAP EPS was only $0.09, adjusted EBITDA narrowed by approximately 84% year-over-year, and quarterly free cash flow turned negative $2.5 billion. Management attributed the losses to the high-intensity capital investment during its AI-First strategic transformation: AI computing power procurement, data center expansion, and instant delivery subsidies were implemented simultaneously, significantly compressing short-term profit margins. The continued uncertainty surrounding US-China technology frictions and AI chip export controls further amplified market pessimism. It is reported that its shares fell nearly 4% in pre-market trading today.

The sharp fluctuations in stock prices significantly increased trading activity in the derivatives market. In the past 24 hours, the total trading volume of BABAUSDT perpetual contracts across all platforms reached approximately $45.1 million. Bybit led all exchanges with a trading volume of $13.24 million, accounting for 29.35% of the market share, surpassing Binance ($4.52 million, 10.01%), Hyperliquid, and KuCoin.