Alibaba (NYSE:BABA) stock is rising higher on Tuesday as investors prepare for the e-commerce company to release earnings later this week.
When that earnings report comes out, Alibaba is expected to announce a 4.3% increase in revenue. The company has also been working to reduce costs in recent months. This could lead to it beating out estimates when its earnings report comes out on Thursday.
Adding to this, options traders don’t seem to be betting against BABA stock. Bearish contracts are heading lower in what could be a sign that investors have faith the company will perform well.
Minyue Liu, an investment specialist at BNP Paribas Asset Management, told Bloomberg the following:
“Valuations of tech and innovation stocks in China look very attractive compared to historical level and global peers […] The risk-reward is more on the reward side at current valuation level.”
What to Expect From Thursday’s Earnings Report
When Alibaba reports earnings this week, Wall Street expects it to announce EPS of $1.63. To go along with that, experts also predict that the Chinese e-commerce company will see revenue of $29.31 billion for the quarter.
Investors will note that BABA stock is seeing strong trading on Tuesday. As of this writing, around 22 million shares of the stock have changed hands. That’s already matching the daily average trading volume of about 22.2 million shares.
BABA stock is up 10.3% as of Tuesday morning.
Investors can find all of the latest stock market news below!
We’ve got the hottest stock market coverage traders need to know about! For Tuesday, that includes what has shares of Walmart (NYSE:WMT) and Home Depot (NYSE:HD) stock moving, as well as the biggest pre-market stock movers from this morning. You can read all of that news at the following links!
More Tuesday Stock Market News
- WMT Stock Pops as Walmart Beats Q3 Expectations
- Housing Market Woes Weigh on Home Depot (HD) Stock
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
