(Bloomberg) — Investors looking for an end to the freefall in shares of Chinese e-commerce company Alibaba Group Holding Ltd. may be in for a long wait, if options traders are correct.
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The stock’s 75% tumble from a 2020 record high has driven its valuation to an all-time low and put its market capitalization on a par with upstart rival PDD Holdings Inc. The derivatives market indicates further pain, with the options skew showing increased bearishness ahead of Alibaba’s earnings report due Wednesday.
A put contract betting the stock will drop more than 10% by the end of April was the most traded on Monday. Still, the shares climbed as much as 7% in Hong Kong on Tuesday amid some optimism for positive earnings, especially given the fact that the company moved forward its reporting date.
Alibaba’s revenue for the three months through December is expected to…
