Roundhill BABA WeeklyPay ETF (BABW) has seen unusual trading volume, which is 27× higher than its average daily volume.
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Alibaba Group (BABA), the ETF’s top holding at 8.7% of assets, is under pressure after reporting fiscal Q3 results that showed a 67% year-over-year drop in adjusted net income, driven by heavier spending on e-commerce and AI, which pushed the stock sharply lower in recent days. Despite the earnings miss and weakness in its core e-commerce business, analysts at firms including BofA, Goldman Sachs, Morgan Stanley, and US Tiger Securities have reiterated or upgraded to Buy ratings, citing about 36% growth in cloud revenue, triple-digit AI-related revenue growth, and expectations that these investments will support long-term margin recovery and upside from current price levels.