icon
icon
icon
icon
Upgrade
icon

Alibaba Climbs to 4th in WSB Rankings as Stock Soars on Buyback Confidence

AInvestThursday, Oct 3, 2024 7:01 am ET
1min read

Alibaba ranks 4th in the latest WSB ranking, rising one place from yesterday. The company's stock has gained 2.23%, marking a two-day increase of 8.60%, and achieving the highest intraday price since January 2023.

On October 2, Alibaba Group announced at the Hong Kong Stock Exchange that it had repurchased a total of 4.14 billion ordinary shares, equivalent to 52 million American Depositary Shares, for $4.1 billion during the quarter ending September 30, 2024. This action took place under the company's buyback program in both U.S. and Hong Kong markets.

As of September 30, 2024, Alibaba's total outstanding ordinary shares stood at 18.62 billion, with a net decrease of 405 million shares from June 30, 2024, translating to a 2.1% reduction when considering shares issued under stock incentive plans.

Following this recent buyback effort, Alibaba still retains $22 billion in authorized repurchase capacity, with the program extended to March 2027. This ambitious stock repurchase highlights Alibaba's substantial commitment in recent quarters, having invested $5.8 billion in the first quarter of the fiscal year 2025 alone, surpassing prior periods.

This strategic buyback is regarded by industry observers as reflecting increasing confidence by company management in its stock valuation and future prospects. Historically, such buyback activities tend to peak during market downturns, signaling Alibaba's assertive stance on its growth outlook.

Founded in 1999, Alibaba has grown to become a prominent name in the global e-commerce sector, spearheaded by platforms like Taobao and Tmall. Alongside its core e-commerce business, Alibaba has extended its influence into mobile payments through Alipay, becoming a significant player in China's digital payment landscape.

Alibaba's 2024 fiscal year goals aim to drive global strategies and service over 1 billion consumers through its China consumer business while generating over RMB 10 trillion in annual consumption through its platforms. An even more ambitious vision for the fiscal year 2036 includes serving 2 billion consumers globally and supporting 10 million SMEs in generating profit, thereby creating 100 million jobs.

In its 2024 Environmental, Social, and Governance (ESG) report, Alibaba reiterated its enduring corporate vision to thrive for 102 years by fostering a community where people meet, work, and live. This underscores its commitment to not just expansion, but becoming a lasting and responsible enterprise.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.