A Yahoo Finance analysis article pointed out that Alibaba announced on Friday its plan for a secondary stock offering of approximately $10.2 billion, which will dilute existing shareholders' equity, and the offering price represents an 8.4% discount to Friday's closing price. Furthermore, the company stated that all proceeds from this fundraising will be used for its AI business, yet just the day before, Alibaba's Q2 earnings report showed that AI expenditures had already dragged down current period profits. The article believes that these accumulated negative news items make Alibaba stock lack buying value in the short term.