Roundhill BABA WeeklyPay ETF (BABW) has seen unusual trading volume, which is 27× higher than its average daily volume.
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The ETF’s largest holding, Alibaba Group, has come under pressure after its shares fell about 10% over the past week following a sharp drop in quarterly profit and a 67% year-on-year plunge in adjusted net income, driven by heavy reinvestment in e-commerce and AI and softer consumer demand in China. Despite the near-term margin hit and ongoing weakness in its core e-commerce business, Alibaba’s cloud and AI segments are growing rapidly, with cloud revenue rising in the mid-30% range and AI-related sales posting triple-digit growth for ten consecutive quarters, leading many major brokers to maintain Buy ratings and view the recent selloff as a potential long-term opportunity.