What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding Limited  BABA remains engaged in constructive efforts to drive shareholder value as economic slowdown and deflationary pressure dampen its prospects. 

The stock is trading lower Tuesday at par with the broader index KraneShares CSI China Internet ETF KWEB.

The U.S. government revealed plans to halt shipments to China of more advanced AI chips designed by Nvidia Corp NVDA and others, citing military threats.

The latest embargo will hit Nvidia's A800 and H800 chips, tailor-made to comply with China's previous sanctions due to a change in chip parameters, Reuters reports.

The e-commerce giant's Taobao & Tmall Group doled out massive rebates and discounts during this year's online retail extravaganza Singles' Day shopping season to fend off competition against JD.com Inc JD and PDD Holdings Inc  PDD Pinduoduo.

Alibaba looks to win over shoppers by enticing them with the lowest prices seen online, SCMP reports.

Taobao Live is offering 1 billion yuan ($137 million) worth of cash coupons from October 12 - October 23, as per Alibaba's live-streaming platform amid competition from short-video apps Douyin, the Chinese version of TikTok, and Kuaishou.

Merchants on Taobao and Tmall can participate in the platforms' "good deals every day" campaign between October 24 and November 11.

Alibaba founder Jack Ma in May met informally with the company's e-commerce executives, advising them to refocus on Taobao and consumers.

Meanwhile, analysts have been slashing their price targets for Alibaba JD.com as sales have struggled to meet expectations.

At least eight brokers cut their expectations for Alibaba in October by 2.2% - 9.8%.

The downgrades fueled China bears' concerns, who have argued that China's earnings are on a structural decline due to Beijing's social-driven policies.

Online sales of physical goods in July and August grew at less than half the pace in the second quarter, as per official data.

Goldman Sachs said that companies in the MSCI China Index missed market expectations by a "considerable margin" in the June quarter. China emerged as a critical drag in the Asian markets.

Corporate profits will be critical to Chinese stock performance in the next six to nine months, as per Arthur Budaghyan, chief China strategist at BCA Research.

Price Action: BABA shares traded lower by 0.87% at $83.58 on the last check Tuesday.