Alibaba Group Holding (NYSE:BABA) stock is moving higher today, last seen up 7% at $144.32, even after the China-based e-commerce company posted mixed quarterly results. Profitability took a hit during the March quarter as Alibaba ramped up spending on artificial intelligence, tech infrastructure, and e-commerce growth. Company executives defended the increased investment on the earnings call, saying the spending is expected to support long-term growth. Adjusted earnings fell 84% from the same period last year.
BABA pared earlier losses out of the gate this morning, and is now poised to break out of the $145 level, which has kept a lid on gains since early-March. This area roughly coincides with the stock's 100-day moving average. The stock is still below its year-to-date breakeven level, but is 10% higher in the last 12 months.
Alibaba sports a 10-day call/put volume ratio of 4.75 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) which stands higher than 93% of all other annual readings.
So far, over 164,000 calls and 31,000 puts are across the tape, which is six times the average daily pace. Seeing the most attention are the May 145, 150, and 140 calls, all set to expire after Friday's close.
