Buzz Stocks: Alibaba Group Holding Ltd, Infinity Pharmaceuticals Inc., and Valeant Pharmaceuticals Intl Inc

Today's stocks to watch in the news include Alibaba Group Holding Ltd (NYSE:BABA), Infinity Pharmaceuticals Inc. (NASDAQ:INFI), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

Josh Selway

Jun 14, 2016 at 9:28 AM

U.S. stocks are pointing to a lower start this morning, as anxiety swirls ahead of the Fed's two-day policy-deciding meeting. Among the equities in focus today are Chinese e-tailer Alibaba Group Holding Ltd (NYSE:BABA), as well as biotech stocks Infinity Pharmaceuticals Inc. (NASDAQ:INFI) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

BABA has added almost 2% in pre-market trading, after the company announced it expects transactions volume to nearly double by 2020 and for revenue to grow by 48% in fiscal year 2017. The stock has experienced whipsaw price action this year, with Monday's settlement at $75.45 leaving the shares 7.2% lower year-to-date. Regardless, analysts have remained upbeat, with 89% of the brokerage firms tracking Alibaba Group Holding Ltd calling it a "buy" or better, with no "sell" ratings on the books.

Yesterday, INFI fell to a seven-year low of $4.38, before closing at $4.41 -- 60% lower year-over-year. More losses are in store for the stock today, as the shares have plummeted over 67% in electronic trading -- on pace to open at an all-time low -- after the company announced a restructuring plan that would cut one-fifth of its workforce. The news follows disappointing mid-stage trial results for Infinity Pharmaceuticals Inc.'s non-Hodgkin lymphoma treatment. J.P. Morgan Securities downgraded the stock to "neutral" as a result, and more bearish notes could come, since six analysts still call INFI a "buy" or better.

VRX is edging higher this morning, ahead of the company's annual shareholders meeting, scheduled for 9 a.m. ET. As new CEO Joseph Papa prepares to assure investors the company is on the right track after a 90% collapse in the stock over the past 12 months, reports are surfacing that Valeant Pharmaceuticals Intl Inc is working to sell its dermatology businesses. At $23.78, VRX is sitting just above its five-year low of $22.52 from last week, but short-term options traders remain more call-skewed than normal. Specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.88 ranks just 4 percentage points from a 12-month low.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Follow @Schaeffers

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.

👉 Sign up now to receive the next trade