Alibaba’s U.S.-listed shares dropped 3.4% on Monday after the company launched a $10.2 billion stock sale at a significant discount to finance its artificial intelligence initiatives.
The broader market showed mixed signals, with Dow E-minis down 0.05%, S&P 500 E-minis off 0.2%, and Nasdaq 100 E-minis declining 0.6% in early trading. Nvidia, the world’s most valuable company, remained flat with a 0.1% pre-market gain, despite Bloomberg reporting that some of its largest clients were notified of server price increases exceeding 15% for AI chip-equipped systems.
Chipmakers underperformed, with Sandisk down 5%, Seagate falling 3.2%, and Coherent retreating 4.7%. Alphabet and Apple diverged, with Apple up 0.4% and Alphabet down 0.3% in pre-market trading.
Elsewhere, homebuilder PulteGroup advanced 2.1% after Wolfe Research upgraded the stock to Outperform from Peerperform, citing a smaller-than-average 2.7% reduction in its 2026 EPS estimate compared to peers, which averaged a 21.4% cut. The firm also highlighted PulteGroup’s accelerated share buyback program.
Footwear brand Birkenstock rose over 3% in pre-market trading, recovering near its 52-week low after reporting fiscal third-quarter revenue of €719.5 million, surpassing expectations. The company also raised its annual revenue growth guidance to 15% in constant currency and lifted its adjusted EBITDA projection.
Jersey Mike’s Subs saw modest gains following the expiration of its post-IPO quiet period, as at least four brokerages initiated coverage with largely positive ratings. The company’s IPO, priced at $23 per share, raised approximately $1 billion.
