Here's Why Alibaba's Stock Didn't Get a Boost Despite Big Share Buyback: Bloomberg

Loading...
Loading...
  • Alibaba Group Holding Ltd BABA shares traded 60% below the 2021 peak despite a $9 billion share buyback boost, Bloomberg reports.
  • The boost marked the third increase since China's domestic tech crackdown started in late 2020.
  • After the buyback announcement, Alibaba's shares jumped up to 9.8% to HK$108.80 in Hong Kong, trailing the February 2021 peak of HK$267.
  • Also Read: Alibaba Shares Plunge After Q3 Earnings - Read How It Performed
  • Alibaba's lackluster performance reflected concerns about the crackdown affecting Alibaba's core business and the broader weakness in Chinese equities thanks to the Covid resurgence and slowing economic growth.
  • Alibaba's losses of $450 billion in market cap are the world's biggest after its peer Tencent Holdings Ltd TCEHY.
  • China recently promised to ensure stability in capital markets, support overseas stock listings, resolve risks around property developers and complete the crackdown on Big Tech "as soon as possible.
  • MeanwhileAlibaba is planning to slash its workforce by 30%.
  • Price Action: BABA shares traded higher by 11.40% at $115.38 on the last check Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsBuybacksTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...