Alibaba's stock dropped nearly 5% following its FY2026 Q4 earnings report, which revealed a significant decline in profitability. The company's Non-GAAP EPS fell to $0.09, and adjusted EBITDA contracted by 84% year-over-year. Additionally, Alibaba reported a negative free cash flow of $2.5 billion for the quarter. The losses were attributed to substantial investments in AI computing, data center expansion, and delivery service subsidies as part of its AI-First strategy. Market sentiment was further dampened by ongoing U.S.-China tech tensions and AI chip export controls. Meanwhile, Bybit's BABAUSDT futures trading volume exceeded $13 million, reflecting heightened market activity around Alibaba's financial developments. This surge in futures trading indicates increased interest and speculation among traders amid Alibaba's strategic shift and market challenges.