Largest Negative Opening Gaps for BABA

How does BABA usually behave after a large gap-down move?

Using the 12 largest gap-down moves over the last 3 years in BABA stock, the average move was -5.3% with the single largest opening gap of -9.9% occurring on 4-Apr-2025. Following the opening, BABA tended to drift lower to the closing price 58% of the time for an average loss of -0.1%. The following day, BABA stock price averaged -0.6% losses, with up moves and down moves occurring equally. Earnings dates have been excluded from this analysis.

Catalysts

4 of BABA's 12 largest moves corresponded with a large gap down in the overall market. 1 of the moves coincided with a company-issued press release.

Open-to-High and Open-to-Low

The largest percentage gain from the open to the high of the day was +6.7% on 7-Apr-2025, while the biggest drop from the open to the low was -5.1% on 24-Feb-2025. On average, the BABA stock price gain from the opening price to the highest point of the day was +2.0%, and the average drop to the lowest point was -2.1%.

Day Drift Open-to-Close

The best performance in BABA stock price from opening price to closing price (referred to as the "drift" for the day) was on 5-Aug-2024 for a +3.7% gain after the stock gapped down -4.1% at the open. The worst worst return from the opening price to the closing price was on 24-Feb-2025 when the stock lost -4.7% after the stock gapped down -5.8%. Overall in the 12 available observations, the stock drifted lower 58% of the time for an average loss of -0.1%.