PDD - Alibaba's Stock Plummets: Options Traders Bet Big On Further Stock Slide | Benzinga
The future of Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) looks increasingly uncertain as options traders foresee a prolonged slump in its stock value.
What Happened: Alibaba’s shares have plummeted by 75% from their 2020 peak, dragging its valuation to an all-time low, reported Bloomberg. This has put the company’s market capitalization on par with that of its rival, PDD Holdings Inc (NASDAQ:PDD).
Options traders are predicting more turbulence, with the options skew indicating increased bearishness just before Alibaba’s earnings report, which is scheduled for Wednesday. A put contract, betting on a further 10% drop in the stock by the end of April, was the most traded on Monday.
Despite this, the shares saw an increase of up to 7% in Hong Kong on Tuesday, possibly due to optimism regarding positive earnings. Alibaba’s revenue ...