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Thursday, May 19, 2022

Alibaba raises share buyback plan to record $25 billion

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(Reuters) – Alibaba raised its share buyback plan to $25 billion on Tuesday, the largest such program in the e-commerce giant’s history, to shore up its battered shares as it faces regulatory action and concerns about the economic slowdown. Alibaba shares, which have more than halved in value in the past year, rose on the news and closed up 11% in Asia. US-traded shares advanced 9% in pre-market trading.

The plan was revealed amid a rally in tech stocks in recent days after Chinese Vice Premier Liu He said Beijing will implement more measures to boost the economy as well as policy initiatives favorable to capital markets. .

This is the second time Alibaba Group Holding Ltd has expanded its referral program in a year. He had increased the program from $10 billion to $15 billion last August.

“The stock recommendation underscores our confidence in Alibaba’s long-term growth potential and sustainable value creation,” Alibaba deputy chief financial officer Toby Xu said.

“Alibaba’s stock premium does not reflect well the value of the company, given our financial strength and our expansion plans.”

(Reporting by Shubham Kalia, Josh Horwitz, and Jason Xue. Editing in Spanish by Marion Giraldo)

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