Alibaba Stock Surges Ahead Of Earnings, Stimulus Hopes, But Is BABA Stock A Buy Now?

Alibaba stock was poised to open sharply higher Tuesday, helped by a 4% jump for the Hang Seng index and 3.2% rise for the Shanghai composite overnight. BABA stock looks like it’s on sale now with earnings due early Wednesday, but is Alibaba stock a buy now?

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Sentiment was positive in Chinese stocks again after China’s securities and regulatory commission said it would “guide institutional investors…..to enter Chinese stock markets with greater efforts.”

The Shanghai composite on Monday closed at its lowest level since 2020.

Alibaba (BABA) also surged on Jan. 23 on reports that co-founder Jack Ma and business associate Joe Tsai have been buying shares of BABA stock in recent months.

According to an SEC filing, Tsai purchased $151 million in Alibaba stock in the fourth quarter via his Blue Pool Management family fund. Ma, meanwhile, bought $50 million worth of Alibaba stock. Ma stepped down as the company’s chairman in 2019 and remains a big shareholder.

Alibaba came under selling pressure on Sept. 11 after outgoing CEO Daniel Zhang unexpectedly stepped down as head of the company’ cloud business.

The company said in June that Zhang was departing as chairman and CEO of the company to focus on Alibaba’s cloud intelligence unit. In May, Alibaba announced plans to spin off its cloud business as a separate, publicly traded company.

In December, the company said that CEO Eddie Wu would take over the company’s struggling e-commerce business. Wu replaced

Recent Earnings

Alibaba on Nov. 16 reported an 18% rise in quarterly profit, with revenue up 6% to $30.8 billion. BABA also declared an annual cash dividend for fiscal year 2023 of $1 per ADS. But sellers hit the stock after BABA said it’s walking away from plans to spin off its cloud unit in light of recently-expanded U.S. chip restrictions.

Sentiment was positive around Alibaba stock on August 10 as Wall Street weighed the company’s latest earnings report.

Adjusted profit increased 37% to $2.40 a share,…