BABA and JD are both higher today
Alibaba Group Holding Ltd (NYSE:BABA) is surging today, last seen up 6.8%at $86.47, while JD.Com Inc (NASDAQ:JD) stock is enjoying a more modest 1.1% pop to trade at $33.98 at last check. Below, let's dive into what's driving today's positive price action.
Alibaba stock is brushing off three price-target cuts after the company reported an 86% drop in profits for the fiscal fourth quarter, while revenue beat estimates. The e-commerce name is re-investing in strategies that drive growth, however. Shares are today trading at their highest level and eyeing their biggest single-day percentage jump since November.
Meanwhile, JD.Com beat first-quarter earnings and revenue expectations thanks to price cuts and discount coupons that boosted sales. The shares are still seeing overhead pressure at the $35 level, which capped a late-August rally, but earlier this week surged to levels not seen since September. JD also sports a 23.6% quarter-to-date lead.
Options traders are targeting both stocks, with 428,000 calls and 143,000 puts traded for BABA, and 80,000 calls and 44,000 puts for JD -- triple and double the intraday average volume for each stock, respectively. The May 85 call is most active for the former, with positions being opened there, and the 34 call in that series for the latter.