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Alibaba ups share buyback to record $25 billion
STORY: Alibaba is taking action to prop up its tumbling share price. The e-commerce titan said Tuesday (March 22) that it would increase a planned share buyback to $25 billion. That’s a record for the company. It’s also the second time it’s increased the buyback plan. Last year it was boosted from $10 billion to $15 billion. Alibaba is acting after its share price cratered more than 50% over the past year. It’s been under pressure since late 2020, when billionaire founder Jack Ma publicly criticised Chinese regulators. Watchdogs later slapped it with a record $2.8 billion fine for anti-competitive behaviour, and halted a blockbuster IPO for its financial arm. Investors also worry about mounting competition, and slowing growth. Now the firm says the decline doesn’t fairly reflect its value and outlook. It’s also hoping to sell into a rising market. Chinese tech stocks have been buoyed in recent days after China said it would take steps to support the economy. Alibaba’s Hong Kong-traded shares jumped over 11% following news of the buyback plan.
