Alibaba stock (NYSE: BABA) jumped about 11% on July 8 to nearly $109, its best single day in 10 months.

The pop followed a pre-earnings update showing its cash-losing delivery business improving and profits holding steady. Yet even as buyers rushed in, several big banks quietly trimmed their price targets.

Why Alibaba Stock Suddenly Popped

The trigger was a pre-earnings briefing. Alibaba said losses in its instant-commerce business, its money-losing quick-delivery arm, narrowed last quarter while overall profit stayed stable.

Note: Alibaba is a Chinese company, but BABA is its US-listed stock, an American depositary share (ADR) that trades in New York in dollars. That is the price this…