Alibaba Stock Has Surged on China Growth Hopes. Earnings Could Derail the Rally
Alibaba Group Holding stock has been on a roll for the past month in response to hope that better times for China's economy could help its online retail business. Quarterly earnings from the company, due on Tuesday, could fuel the rally, or finish it.While Alibaba's American depositary receipts are down 4% over the past year, trading for a fraction of the high they reached in late 2020, the stock has jumped 19% in the past month. The gain has come in response to optimism over the prospect of economic stimulus and growth in China, which has endured a market-rattling slowdown in the past year.The latest leg higher for Alibaba came on Monday. The stock closed up 5.7% in U.S. trading as investors digested inflation data disclosed over the weekend. China's consumer price index rose 0.3% from a year earlier in April, up from a 0.1% increase in March and the 0.1% gain economists had expected.That is a good sign for Alibaba because it indicates that consumers are buying again. Data showing def