What's Going On With Alibaba Stock Monday?

Alibaba Group Holding Limited BABA stock is trading lower Monday at par with the broader index KraneShares CSI China Internet ETF KWEB amid reports of tighter U.S. curbs on technology exports to China and the worsening Israel-Hamas war.

U.S. eyes stricter regulations on selling graphics chips for artificial intelligence purposes and advanced chip-making equipment to Chinese companies. 

The rules could pose a significant deal breaker for China's AI ambitions as companies, including Alibaba and Baidu, Inc BIDU, remain aggressive in their AI endeavors.

Also, China's gross domestic product probably rose at an annual pace of 4.5% last quarter, slower than the 6.3% gain in the second quarter, SCMP reports.

On the positive front, Alibaba's Freshippo supermarket chain, affiliated grocery brand Hema Xiansheng, looks to transform approximately 350 offline stores into discount supermarkets by the Chinese New Year in 2024.

The grocery brand, which is preparing to slash prices on over 5,000 items by an average of 20%, is set to extend to online orders in the future. Implementing these discounts is facilitated by a more direct supply chain, mirroring the approach of competitors like Walmart Inc WMT, Sam's Club, and Costco Wholesale Corp COST, experiencing a notable 13.3% growth in average weekly DAU (Daily Active Users), signaling a strategic move to enhance its market share amid considerations for an IPO.

Price Action: BABA shares traded lower by 0.52% at $83.58 premarket on the last check Monday.