(Bloomberg) – For investors hoping for a turnaround in the plummeting shares of Alibaba Group Holding Ltd., the options market suggests that the wait may be prolonged.
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The stock’s value has hit an all-time low after dropping nearly 80% from its 2020 peak, putting it on par with rival PDD Holdings Inc. The options market indicates increased bearish sentiment, with the options skew showing a pessimistic outlook ahead of Alibaba’s upcoming earnings report. The most actively traded put contract on Monday in Hong Kong was one betting on a 14% drop in the stock by the end of April.
Alibaba’s revenue for the last three months of 2020 is expected to have increased by 5.6% from a year ago, marking the slowest growth in three quarters due to challenging economic conditions and aggressive discounting. Forward earnings estimates for the company have declined by about 4% over the past month.
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Source from finance.yahoo.com