Alibaba (BABA) repurchased $4.8 billion worth of shares last quarter in both the U.S. and Hong Kong markets as part of a broader buyback program, the Chinese e-commerce giant announced late Tuesday. But Alibaba stock — which is down 28% over the past 12 months — was little moved by the announcement.
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For its fiscal year ending in March, Alibaba said it spent $12.5 billion on buybacks, repurchasing about 5% of shares. The company, which fell out of favor with investors late in 2020, has been speeding up outlays to purchase it own shares. In February, Alibaba said it approved a plan add $25 billion to its share buyback program through March 2027.
On the stock market today, Alibaba stock closed down by less than 1% at 72.44. The most recent buyback represents its second largest outlay for a single quarter, according to Dow Jones Newswires. In its September 2021 quarter, Alibaba bought back $5.1 billion worth of its stock.
Alibaba Stock: Down 7% This Year
Meanwhile, the start of 2024 has brought little relief for the ongoing struggles for Alibaba’s stock. Shares peaked at more than 300 late in 2020, before a regulatory crackdown in China and concerns about the broader Chinese economy dragged down Alibaba stock.
So far this year, Alibaba stock is down about 7%. The company’s e-commerce business is also facing stepped up competition from Pinduoduo, the discount shopping platform owned by PDD Holdings (PDD).
For its December quarter, Alibaba’s revenue increased 5% year over year in local currency to $36.2 billion.
The firm said in March 2023 it would break its business into six separate entities, including one for its e-commerce efforts and for its cloud-computing division. The company’s U.S.-listed shares surged on the announcement.
But that plan has shifted. Last week, Alibaba announced it would no longer spin off its Cainiao Smart Logistics Network subsidiary. That was the latest change for a major restructuring effort that was going to split the tech giant into six different companies. In November, Alibaba put its plans for the cloud spinoff on hold. Alibaba stock tumbled on the announcement.
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