Market Sentiment Turns Bearish on Alibaba Holdings

Investors show increasing bearishness towards Alibaba Gr Hldgs (BABA) as 45% of recent option trades indicate pessimism amid a downtrend in stock price. Experts maintain a price target of $170 amidst this uncertainty.

Date: 08-04-2025

AI Rating: 5

Market Sentiment Overview
Recent trading activity suggests a cautious outlook on Alibaba Gr Hldgs (BABA), with a notable number of investors adopting a bearish stance. Out of 37 detected trades, 45% have been bearish compared to 37% bullish. This indicates a prevailing sentiment among large investors or 'whales' that could negatively impact Alibaba's stock price in the short term.

Options Activity Insights
In detail, the options data indicates a total trade amount of $3,639,877, with puts grossing $2,313,864 and calls at $1,326,013. The dominance of bearish puts reflects rising skepticism about Alibaba's near-term performance. Such options strategies often signal that investors are hedging against potential price drops, which could contribute additional pressure to the stock.

Price Range Expectations
The analysis highlights that options traders are targeting a price range of $82.5 to $200 for Alibaba Gr Hldgs over the last 3 months. This wide spread reflects uncertainty and varying investor expectations about the company's performance. As of now, Alibaba's stock sits at $99.99, indicating that traders may anticipate further volatility.

Company Performance Indicators
Current market conditions reveal that Alibaba has experienced a 5.65% drop in price and significant trading volume at 35,174,347. Despite this drop, an upcoming earnings announcement in 35 days could provide critical insight into Alibaba's financial performance. Notably, while EPS and net income figures weren't mentioned in the report, the anticipation surrounding earnings may serve to stabilize or further influence stock price sentiment soon.

Analyst Ratings
Professional analysts remain cautiously optimistic, setting an average price target of $170, with Mizuho maintaining an ‘Outperform’ rating. This suggests that despite the bearish options activity, there is still an expectation of considerable upside potential if fundamentals align positively in upcoming earnings.

Stocks: BABA