Alibaba Group (BABA, Financials), the Chinese technology company best known for its e-commerce platforms, cloud business and digital services, jumped more than 10% as investors looked ahead to its upcoming earnings report.
The move came as the broader U.S. market was under pressure from renewed tensions between the U.S. and Iran. Alibaba, however, moved in the other direction as traders focused on the company's own business outlook.
Part of the optimism centers on Alibaba's instant-commerce business. Recent reports suggest losses in the operation could narrow while the company keeps overall profitability steady.
That matters because investors have been watching how much Alibaba is spending to compete in faster delivery and other retail services. Smaller losses could ease some of those concerns.
The sharp move also shows expectations are building before earnings. Alibaba will now need to give investors more evidence that its newer businesses can grow without putting too much pressure on profits.