China's renowned entrepreneur, Jack Ma, co-founder of Alibaba (NYSE:BABA), has been actively purchasing shares in the tech giant, according to the New York Times.
Ma’s doubling-down on BABA is signaling a potential shift in sentiment. He had notably clashed with Chinese officials, leading to his diminished public presence and distancing from Alibaba in recent times.
Despite relinquishing control of Alibaba's fintech sister company, Ant Group, last year, Ma has now been acquiring shares in Alibaba, along with chairman Joe Tsai.
In the past few months, Tsai, through his Blue Pool Management family investment vehicle, invested approximately $151 million in Alibaba's U.S.-traded shares in the fourth quarter.
Concurrently, Jack Ma, though no longer serving as the executive chairman since 2019, remains a significant shareholder and reportedly purchased $50 million worth of Hong Kong-traded stock in the same period.
Alibaba stock added 5.6% in pre-market trade. Shares were down 11.5% year-to-date through Monday’s close and down 42.5% over the last 52 weeks.
The positive sentiment is also underpinned by Bloomberg’s report that the China’s government is working on a stimulus package to support the embattled stock market.
While the purchase sizes may seem relatively modest in comparison to Alibaba's $171 billion market capitalization, the involvement of these influential figures suggests a noteworthy development.