Alibaba is set to report earnings on August 29, two days after Nvidia’s results, as traders weigh how the stock may move alongside Hong Kong-listed peers and broader regional markets.
Market watchers note that Alibaba’s shares have tended to track the Hong Kong market closely. When Hong Kong has been strong, Alibaba has often followed with upside; conversely, the stock has shown pullbacks after prior earnings events. This cycle has left some investors hopeful that the upcoming report could show staying power this time around.
One trader argues there could be a constructive move if the stock can push above the 130 level. In that scenario, he sees room for Alibaba to advance toward the mid-140s or even 150s by the end of October.
In terms of options activity, a bullish play was discussed: buying October 125 calls, currently trading in the neighborhood of $10.50 to $11. If Alibaba breaks above 130, the trader believes there could be meaningful upside toward the 145–155 range by late October, offering a potential pay-off for those positioned ahead of the earnings report and the ensuing volatility.
Investors should keep an eye on how Alibaba’s results align with the performance of the Hong Kong market and any broader tech-sector cues from the region. Earnings-day volatility can influence moves in shares and options alike, so risk management remains important.
Summary and outlook:
– Alibaba’s earnings are due August 29, two days after Nvidia.
– Historical correlation with Hong Kong markets remains a key driver.
– A break above 130 could open a path toward 145–155 by late October.
– A bullish October 125 call strategy was highlighted, reflecting a bets-on-movement thesis if key resistance is cleared.
– Positive momentum would hinge on regional market conditions and the company’s earnings surprise relative to expectations.
Positive note: If the stock and the Hong Kong market maintain favorable momentum, Alibaba could see a notable upside move through the October window, driven by both earnings results and continued consumer and cloud-tech demand signals in Asia.