Billionaire Investor Ryan Cohen Boosts Stake in Alibaba to $1 Billion

Billionaire investor Ryan Cohen, known for his successful investments in companies like GameStop (GME) and Bed Bath & Beyond (BBBY), has reportedly increased his stake in Chinese e-commerce giant Alibaba Group (BABA) to approximately $1 billion, according to a report by The Wall Street Journal. Cohen, the founder of Chewy (CHWY) and chairman of GameStop, has been quietly amassing shares in Alibaba, with his stake now valued in the hundreds of millions of dollars.

Cohen's interest in Alibaba is not a surprise, given his history of taking large positions in companies he believes have significant long-term potential. In August 2022, Cohen reached out to Alibaba's board of directors, arguing that the company's shares were undervalued and that it could achieve double-digit sales growth and 20% free cash flow growth over the next five years. Cohen has also pushed for the company to increase its share buyback program from $40 billion to $60 billion, indicating his confidence in the company's undervalued stock price.

Alibaba, the world's largest e-commerce platform, has faced challenges in recent years due to the COVID-19 pandemic and global macroeconomic concerns. In August 2022, the company reported its first quarterly revenue drop since going public in 2014. However, Alibaba's board of directors has been working to address these challenges and position the company for future growth.



Cohen's increased stake in Alibaba suggests that he sees significant long-term potential in the company, despite its recent struggles. By pushing for share buybacks and arguing for the company's growth prospects, Cohen is demonstrating his confidence in Alibaba's ability to overcome its current challenges and continue to grow in the future.

Investors should take note of Cohen's increased stake in Alibaba, as his track record of successful investments speaks for itself. However, it is essential to conduct thorough research and consider the risks associated with any investment before making a decision. Alibaba's recent challenges and the broader macroeconomic environment should be carefully evaluated before investing in the company.

In conclusion, billionaire investor Ryan Cohen has increased his stake in Alibaba Group to approximately $1 billion, indicating his confidence in the company's long-term potential. While Alibaba has faced challenges in recent years, Cohen's investment suggests that he believes the company is well-positioned to overcome these obstacles and continue to grow in the future. Investors should carefully consider the risks and opportunities associated with investing in Alibaba before making a decision.