Technology
Tuesday, January 23rd, 2024 6:33 pm EDT
Key Points
- Major Stock Acquisitions by Alibaba Co-Founders: Alibaba’s co-founders, Jack Ma and Joe Tsai, have acquired shares worth hundreds of millions of dollars on the open market, as revealed in a regulatory filing and reported by The New York Times. An entity linked to Tsai’s family office, Blue Pool, acquired nearly 2 million Alibaba depositary shares worth $152 million in the fourth quarter. Separately, sources indicated that Jack Ma acquired $50 million worth of Alibaba’s Hong Kong stock during the same period. These acquisitions have led to a notable 7% increase in Alibaba’s stock in Tuesday morning trading.
- Challenges Faced by Alibaba in Recent Years: Despite its market cap of more than $174 billion, Alibaba has faced challenges in recent years. A significant setback occurred in 2020 and 2021 when Jack Ma publicly criticized Chinese officials and financial watchdogs. Regulatory pressure stemming from these events ultimately derailed the planned initial public offering (IPO) for Ant Group, Alibaba’s financial arm. Geopolitical pressures have also impacted the company, leading to corporate reorganization plans, including the announcement in March 2023 that Alibaba would spin off its cloud business. However, these plans were later scrapped, citing U.S. semiconductor export controls. Alibaba shares have declined approximately 21% since the cancellation of the spinoff.
- Co-Founders’ Strategic Moves Amid Company Challenges: The recent stock acquisitions by Jack Ma and Joe Tsai suggest strategic moves amid Alibaba’s ongoing challenges. While Jack Ma had largely stepped out of the public eye until recently, the co-founders’ significant investments in Alibaba shares indicate a vote of confidence or strategic positioning. The acquisitions are noteworthy given their potential impact on the company’s direction and performance. Alibaba referred CNBC to Ma’s foundation for comments, and as of now, there has been no response to the request for comment.
Jack Ma and Joe Tsai, co-founders of Alibaba, have made significant stock acquisitions on the open market, with Tsai’s family office, Blue Pool, acquiring nearly 2 million Alibaba depositary shares worth $152 million in the fourth quarter, and Jack Ma acquiring $50 million worth of Alibaba’s Hong Kong stock during the same period. This move has resulted in a positive impact on Alibaba’s stock, with a 7% increase in Tuesday morning trading. While Joe Tsai maintains a more visible profile as the owner of sports teams, including the Brooklyn Nets, Jack Ma had recently stepped out of the public eye. Alibaba, founded in 1999 by Ma and Tsai, has faced challenges in recent years, particularly in 2020 and 2021 when Ma’s public criticisms of Chinese officials and financial regulators, coupled with regulatory pressure, led to the derailment of the planned IPO for Ant Group, Alibaba’s financial arm. Geopolitical pressures and corporate reorganization plans, including the spinoff of the cloud business, have added to Alibaba’s challenges. The company’s shares are down approximately 21% since the canceled spinoff. The recent stock acquisitions by Alibaba’s co-founders signal confidence or strategic positioning amid the company’s ongoing difficulties. Alibaba referred CNBC to Ma’s foundation for comments, which has not yet responded to requests for comment.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/23/alibaba-stock-jack-ma-joe-tsai-buy.html
