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Double the Daily Performance of Alibaba with GraniteShares BABX ETF
ByAinvest
Thursday, Jul 31, 2025 10:51 am ET1min read
The GraniteShares 2x Long BABA Daily ETF (BABX) is a leveraged strategy designed to provide 2x daily performance of Alibaba Group Holdings Limited (BABA). This fund is suitable for traders looking to amplify their exposure to the Chinese market during ongoing trade talks. However, investors should be aware of the potential risks associated with leveraged funds.
The GraniteShares 2x Long BABA Daily ETF (BABX) offers traders an opportunity to amplify their exposure to Alibaba Group Holdings Limited (BABA) through a leveraged strategy. This fund aims to provide 2x daily performance of the underlying stock, making it suitable for investors seeking to capitalize on market movements during ongoing trade talks with China.Investment Strategy and Risk
The GraniteShares 2x Long BABA Daily ETF employs a leveraged strategy, which means it aims to deliver double the daily performance of Alibaba's stock. This strategy can be beneficial for traders who believe in the short-term potential of the Chinese e-commerce giant. However, leveraged funds come with significant risks. The primary risk is that the fund's performance can be amplified on both the upside and the downside. In volatile markets, the daily performance of BABX could significantly diverge from the actual performance of BABA over a longer period.
Recent Market Activity
In the first quarter of 2025, several institutional investors and hedge funds increased their stakes in Alibaba Group. Fiera Capital Corp, for instance, bought 26,223 shares valued at approximately $3,467,000 [1]. Other notable investors, such as Hazlett Burt & Watson Inc. and Valley National Advisers Inc., also increased their holdings in Alibaba during the same period. This activity suggests that institutional investors remain bullish on Alibaba's prospects.
Analyst Ratings and Price Targets
Analysts have mixed opinions on Alibaba Group. As of the latest reports, the stock has an average rating of "Moderate Buy" and a consensus target price of $153.29 [1]. However, the recent dividend cut and varying analyst ratings indicate a cautious approach among some investors.
Market Performance
Alibaba Group's stock has shown resilience despite market volatility. The stock opened at $117.26 on Thursday, with a 50-day moving average of $115.70 and a 200-day moving average of $117.44. The company's debt-to-equity ratio of 0.19, quick ratio of 1.55, and current ratio of 1.55 indicate a strong financial position.
Conclusion
The GraniteShares 2x Long BABA Daily ETF offers traders a way to amplify their exposure to Alibaba Group during ongoing trade talks. However, investors should be aware of the significant risks associated with leveraged funds, such as the potential for amplified losses in volatile markets. Before investing, it is essential to carefully consider the fund's objectives, risks, and potential rewards.
References
[1] https://www.marketbeat.com/instant-alerts/filing-fiera-capital-corp-invests-347-million-in-alibaba-group-holding-limited-nysebaba-2025-07-31/
[2] https://www.moomoo.com/news/post/59259757/record-tr4cking-news-amazon-earnings-preview-will-aws-bring-a-surprise-or-a
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