Alibaba Surges Up To 13% After Upsizing Share Buyback Program To US$25 Billion
Alibaba (NYSE: BABA) announced today that it is increasing its share buyback program to US$25 billion, from the original US$15 billion figure. Following the announcement, the company’s stock spiked by as much as 13.8% as the market opened.
The company earmarked the program for a two-year period until March 2024.
In its previous buyback program, the e-commerce giant repurchased 56.2 million American depositary shares, worth roughly around US$9.2 billion.
The firm is eyeing boosting investor support to push up its valuation after much of it was lost since its record-high price in October 2020, when it was breaching the US$300-mark.
Just last week, the company saw its share price rally up to 23% following China’s announcement of market-friendly measures to support Chinese names to “ensure stable growth.”
Alibaba last traded at US$115.49 on the NYSE.
Information for this briefing was found via CNBC and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
