Alibaba makes second biggest ever quarterly share repurchase worth US$4.8 billion
ALIBABA Group has bought back shares worth US$4.8 billion in the quarter ended March, the Chinese e-commerce giant said on Tuesday (Apr 2), in its second biggest-ever repurchase after beefing up its stock buyback plan in February.
The company had raised its share buyback plan by another US$25 billion in a bid to appease investors concerned over its growth prospects as it faces new market rivals such as PDD.
Alibaba, which is listed in both Hong Kong and the US, had bought back US$2.9 billion worth of stock in the previous quarter.
Its Hong Kong shares have lost more than 6 per cent of their value this year, amid growing worries over the e-commerce pioneer’s fall in earnings, per-user spending and deteriorating Chinese consumption.
These factors have contributed to the once-market dominant Internet firm losing its market share to rivals such as PDD and TikTok owner ByteDance.
The Internet company in February reported net income to ordinary shareholders for the third quarter of 14.4 billion yuan (S$2.7 billion), a 77 per cent slump, mainly due to impairments related to hypermarket operator Sun Art and online video streaming service Youku.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Alibaba is currently in the middle of a split into six different units after the company named a new chief and abandoned a plan to list its cloud division and logistics arm, while refocusing on the core business. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Telcos, Media & Tech
TikTok tells advertisers: ‘We are not backing down’
Everything Apple plans to show at May 7 ‘let loose’ iPad event
Tech platforms make pitch for ad deals as TikTok is roiled by politics
Google, US clash over search advertising as trial winds down
Apple rallies most in 18 months on upbeat forecast, buyback
Microsoft adds security chiefs to product groups in wake of hacking woes