Alibaba Stock Plummets on Delisting, Covid-19 Fears

The equity carries a more than 66% year-over-year deficit

Digital Content Manager
Mar 15, 2022 at 10:24 AM
facebook X logo linkedin

Alibaba Group Holding Ltd (NYSE:BABA) is in the spotlight, after the Securities and Exchange Commission (SEC) last week sparked delisting fears when it spotted at least five Chinese companies that are not in compliance with the Holding Foreign Companies Accountable Act (HFCAA). Though the e-commerce giant has moved towards becoming dual-listed in Hong Kong, China's worst Covid-19 outbreak since 2020 is also weighing on shares. At last check, BABA is down 5,1% to trade at $73.80. 

Digging deeper, the equity has been on a steady decline, shedding more than 13% last week, and now trading at fresh five-year lows. Shares also breached a floor at the $110 level in late February, which had contained multiple pullbacks since December, as the 10-day moving average guides the stock lower. Year-over-year, BABA has dropped 66.9%.

Analysts remain bullish towards Alibaba stock, with 10 of the 12 in question carrying a "buy" or better rating, while the 12-month consensus target price of $186.48 is a 143.9% premium to current levels. Should some of this optimism start to unwind, BABA could go even lower. 

Drilling down to today's options activity, 22,000 calls and 18,000 puts have already been exchanged, which is double the volume that is normally seen at this point. Most popular is the April 90 call, followed by the March 70 put, the latter of which expires at the end of the week.



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI