Alibaba Group Holding Limited Stock Falls 4% After 75% Profit Drop

Alibaba Group Holding Limited stock closed at $128.90 on August 19, just above its daily pivot of $128.65. The technical picture looked constructive heading into earnings. Then a 75% drop in net income reset the narrative overnight.

Key takeaways

• BABA closed at $128.90 on August 19, holding above the 20-EMA ($123.43) and 50-EMA ($120.48).
• The daily 200-EMA at $130.33 remains the key resistance capping any broader trend shift.
• Alibaba reported a roughly 75% drop in net income for the June quarter, driven by heavy AI infrastructure spending.
• U.S.-listed shares fell as much as 4% in early trading, overshadowing 9% revenue growth.
• The 1-hour chart remains bullish with a clean EMA stack, but RSI14 at 68.08 signals stretched conditions.

Daily Chart: Constructive Structure Still Capped by the 200-EMA

BABA holds a constructive but neutral daily structure. Short-term moving averages provide support, yet the 200-EMA at $130.33 keeps the broader trend in check.

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