Alibaba Stock Primed for Rebound on Sales Recovery

  • Put-to-call ratio for Alibaba’s US shares falls to near record
  • Alibaba may return to revenue growth in September quarter

An advertisement for Alibaba’s Singles' Day shopping event in Shanghai.

Photographer: Qilai Shen/Bloomberg
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Investors are betting Alibaba Group Holding Ltd. may finally see its fortunes turn around after a rough 2022 plagued by a 40% slump in the shares and rare sell calls from Wall Street analysts.

Options data show that traders are pulling back on buying bearish contracts that benefit from further declines, with the put-to-call ratio for Alibaba’s US stock nearing a record low. The tech firm is expected to return to sales growth in the September quarter when it reports earnings on Thursday, following its first-ever drop for the prior period.

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Alibaba Stock Primed for Rebound on Sales Recovery