Alibaba's Record $10B+ Share Sale Sparks Pricing Power Showdown

Alibaba Group (BABA) raised $10.2 billion through a Hong Kong share sale to fund its AI expansion, sparking criticism from investor Michael Burry who argued that issuing new shares will dilute existing shareholders.

Burry stated he moved his Alibaba investment into JD.com in June and would only consider buying Alibaba again if the stock falls 50%. The capital raise comes as Alibaba's fiscal second-quarter (Q2) revenue increased 9% to $39.64 billion, but fell short of analyst estimates.

Nvidia Corp. (NVDA) is heading into its Q2 results with fresh signs of pricing power and an expanding push into AI software. The chipmaker is reportedly raising prices on upcoming AI server systems while making a multibillion-dollar commitment to strengthen its open-weight model strategy, including a $6 billion investment in Poolside.

Marvell Technology (MRVL) stock jumped nearly 7% during the week as the company expanded its custom AI-chip partnership with Google ahead of its August 27 earnings report. Walmart Inc. (WMT) stock plunged 10% during the week, triggered by its Q2 earnings despite beating quarterly expectations.