Alibaba’s Stock Sees Spike in Volatility amid Mounting Worries Over its Earnings

Alibaba Group Holding Ltd. sees wild swings over the next few days given options pricing pointing to high volatility in the stock amid investors’ expectations of earnings drop over regulatory crackdown.

According to Bloomberg, the Chinese e-commerce giant’s American depository receipts are poised to move nearly 7% after it reports an expected 60% drop in quarterly profit on Thursday. This would market second-biggest earnings drop since 2015 after plunging 11% on its revenue miss in November.

Investors sentiment plunged on Alibaba after Beijing announced biggest state-owned firms and banks to see a fresh round of checks on their financial exposure and other links to Ant Group Co., as report by Bloomberg on Monday. Alibaba owns a third of Ant

Fresh crackdown worries by Beijing authorities saw Chinse stocks plunge for the third straight session on Tuesday. The Hang Seng Tech Index dropped 1.9% to the lowest since its inception in 2020. Alibaba remained among its biggest losers.