Alibaba co-founders Jack Ma and Joe Tsai demonstrate their confidence in Alibaba, buying over $200M in shares. This move, amid the company's recent struggles, signals a strong belief in its recovery and future growth, which was well received by stock markets (8%). Pity I haven't bought my shares...
Tsai, through Blue Pool, acquired $152M worth of Alibaba shares, while Ma bought $50M in Hong Kong stock. These investments are seen as a vote of confidence in Alibaba's intrinsic value.
Alibaba, once a market leader, has faced setbacks, including regulatory challenges and a canceled IPO for its financial arm, Ant Group. The company's recent decision to not spin off its cloud business also impacted its shares.
The founders' investment comes as Alibaba's market cap stands at over $174B. Their actions could influence investor sentiment and signal a turning point for the company.
The purchases, while not massive compared to Alibaba's overall market cap, are significant due to the stature of the buyers. They could lead to increased scrutiny from investors and market analysts. Alibaba’s stock in the U.S. closed around 7.9% higher after the news, raising the e-commerce giant’s market value to $188.3 billion, representing a jump of around $13.7 billion from the day before the news.
Ma's reduced public role contrasts with Tsai's active presence. Their joint investment might refocus attention on Alibaba's long-term strategies and potential.
Do you think Alibaba can reclaim its old valuetions? What strategy it needs
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