Alibaba Stock Soars 3.46% Ahead of Earnings

On August 13, 2025, Alibaba's stock price surged by 3.46% in pre-market trading, indicating a strong start to the day's trading session.

Alibaba's stock has been showing positive signals from both short and long-term moving averages, suggesting a bullish outlook for the company. This positive momentum is further supported by analysts' ratings, with an average rating of "Strong Buy" from 14 analysts. The stock's performance over the past month has also been impressive, with a gain of 12.78%, outperforming both the Retail-Wholesale sector and the S&P 500.

Investors are eagerly awaiting Alibaba's upcoming earnings disclosure, which is expected to show earnings per share (EPS) of $2.13, reflecting a slight decrease from the same quarter last year. However, the Zacks Consensus Estimate for revenue is projecting net sales of $34.26 billion, up 2.37% from the year-ago period. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and a revenue of $141.93 billion, representing changes of -4.77% and +2.75%, respectively, from the prior year.

Despite the positive outlook, Alibaba's stock currently has a Zacks Rank of #5 (Strong Sell), which may be due to recent adjustments to analyst estimates. The Zacks Consensus EPS estimate has moved 11.85% lower within the past month, indicating some short-term pessimism. However, empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance, suggesting that the current sell rating may not be indicative of long-term performance.

In terms of valuation, Alibaba is currently being traded at a Forward P/E ratio of 14.04, which is a discount compared to the average Forward P/E of 18.58 of its industry. The company also boasts a PEG ratio of 1.62, which is similar to the widely-known P/E ratio but also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.5 as of yesterday's close.