activist investor Ryan Cohen Reportedly acquired stake in Chinese e-commerce giant Alibaba Group Holding baba Worth hundreds of millions of dollars, it is secretly urging the company to speed up its share buyback program.
Cohen and others acquired the stake late last year, The Wall Street Journal reported, citing sources.
He first reached out to Alibaba’s board of directors in August, and based on his belief that it could achieve double-digit sales and free cash flow growth of nearly 20% over the next five years, the company’s stock was He expressed his view that he was greatly underestimated.
Hong Kong-listed Alibaba shares, which fell more than 11% last year, have surged more than 27% since early 2023.
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Buyback Boost: Cohen told Alibaba’s board of directors that the buyback plan could be increased by another $20 billion to about $60 billion, people said.
The activist investor also noted that he admired management’s ability to deliver earnings growth while assembling quality assets, the report added. Cohen added that he plans to forge a collaborative, long-term relationship with the e-commerce giant.
Cohen also emphasized his convictions. Apple AAPLHe owns over $800 million. It’s worth noting that since 2012, Apple has repurchased hundreds of billions of dollars of its own stock, causing its stock to soar.
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