(Bloomberg) — Alibaba Group Holding Ltd. faces a wild ride over the next few days, with options pricing pointing to huge swings in the stock as investors brace for a drop in earnings and further regulatory scrutiny.
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The Chinese e-commerce giant’s American depository receipts are poised to move nearly 7% after it reports an estimated 60% drop in quarterly profit drop on Thursday, Bloomberg data shows. That would be the second-sharpest earnings reaction for Alibaba since 2015, following an 11% slump on its revenue miss in November.
Investor sentiment to Alibaba is becoming increasingly fragile, with Beijing telling the nation’s biggest state-owned firms and banks to start a fresh round of checks on their financial exposure and other links to Ant Group Co., Bloomberg reported Monday. Alibaba owns a third of Ant.
A lower profit for the three months through…
