(Bloomberg) – Alibaba Group Holding Co., Ltd. Shares jumped after the New York Times reported that founder Jack Ma was buying shares in the company.
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Ma and Alibaba Chairman Joe Tsai have bought shares in recent months as the stock has declined, the newspaper reported on Tuesday, citing unidentified people familiar with the matter.
Alibaba shares traded in the United States rose as much as 8.6% in New York, the largest intraday rise since last July. They have fallen 43% over the past 12 months, as Alibaba, once China's most valuable company, has fallen behind Chinese rivals such as Tencent Holdings Ltd. BDD Holding Company
Ma, the once outspoken billionaire who has stayed out of public view after a spat with Beijing, took to an internal message board last year to urge Alibaba to “correct its course” and praised PDD, which was gaining market share with its successful shopping app. Her own. Timo. Ma said Alibaba can achieve success again with determination and hard work.
Tsai's family investment vehicle Blue Pool Management bought nearly 2 million shares of Alibaba stock traded in the U.S. in the fourth quarter, worth about $152 million, according to a securities filing Tuesday. It was the first time Tsai's fund had bought Alibaba shares since at least the fourth quarter of 2017, according to a review of regulatory filings.
Ma, who stepped down as CEO in 2019 but remains a major shareholder, bought $50 million worth of shares in the quarter, the Times reported, citing a person familiar with the matter.
Ma has been selling shares in Alibaba in recent years, and his stake in the company has fallen to less than 5%. He revealed plans to sell 10 million shares worth about $870 million in November. 21 Through two companies he owns, JC Properties Ltd. and JSP Investment Ltd., according to regulatory filings last year.
The stock purchases reflect Ma and Tsai's belief that the company is undervalued after its shares fell sharply from their peak in 2020, The Times reported. Alibaba is valued at about $175 billion.
–With assistance from Antonia Movarish and Brian Ciabatta.
(Updates on previous Ma stock sales in sixth paragraph.)
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