BABA was oversold heading into today, and is now testing a key trendline
Alibaba Group Holding Ltd (NYSE:BABA) stock is bucking the broad-market selloff today, up 9% to trade at $106.98 at last look. The China-based e-commerce name and mainland peers Baidu (BIDU) and JD.com (JD) are up 3% and 5% higher, respectively, as investors rotate out of South Korean and Taiwanese chipmakers.
There are also local reports that Alibaba disclosed quarterly losses that had narrowed, while profitability had held steady. China is also planning to curb access to its top AI models. BABA is now on track for its best single-session gain since August 2025.
Alibaba shares hit an 18-month low of $91.99 on June 26, but are now testing their year-over-year breakeven level and headed for their best daily pop since August. Prior to today's jump, Alibaba's 14-Day Relative Strength Index (RSI) sat down in "oversold" territory at 21.
Analysts remain steadfast, with 22 of 26 in coverage maintaining "buy" or better ratings, with zero "sells" on the books. Plus, the consensus 12-month price target of $188.02 is a 72% premium from its current perch. Should BABA run out of steam and resume its struggles, a shift in sentiment could weigh on the equity.
Options traders are in luck. The stock's Schaeffer's Volatility Scorecard (SVS) sits up at 88, indicating Alibaba has tended to exceed option traders' volatility expectations during the past year.