Shares of Alibaba (NYSE: BABA) were taking a dive today after investors balked at the company's big spending plans in cloud and artificial intelligence (AI). It's not unusual for investors to react poorly to massive capital expenditure layouts and it seems like that's what's happening here.

Alibaba Group Holding Ltd.’s U.S.-listed stock fell nearly 7% on Monday after the online retailer said it plans to spend about $53 billion over the next three years on its cloud computing and Artificial Intelligence infrastructure. The spending plan amounts to nearly eight times its most recent quarterly profit of $6.7 billion.

Improvements in E-Commerce Business Although China’s retail market has been mixed in recent quarters due to uncertain consumer sentiment and decelerating economic