Alibaba (BABA) shares drop as Jefferies cuts target on spending

Shares of Alibaba (BABA) declined following a downgrade from Jefferies, which adjusted its price target amid concerns over AI spending and reported non-core losses. The rating change reflects a reevaluation of Alibaba's growth prospects as AI initiatives require significant investment, impacting profitability in the near term. Jefferies did not provide a specific target price but emphasized potential pressure on revenues due to these expenditures. This development may influence investor sentiment and market perception of BABA's valuation as they navigate financial challenges.