Ryan Cohen Takes Stake in Alibaba: Pushes for Increased Share Buybacks
Jan. 17, 2023 08:10 AMKey Points
- Ryan Cohen has acquired a stake in Chinese e-commerce giant Alibaba worth hundreds of millions of dollars
- Cohen believes Alibaba's shares are undervalued and can achieve double-digit sales and nearly 20% free-cash-flow growth in the next five years
- Cohen suggests increasing the share repurchasing program by an additional $20 billion, bringing it to a total of roughly $60 billion
- Cohen intends to have a long-term, collaborative relationship with the company and sees potential for growth following Apple's successful repurchasing strategy.
According to recent reports, activist investor Ryan Cohen has taken a significant stake in Chinese e-commerce giant Alibaba Group Holding Ltd. worth hundreds of millions of dollars.
Cohen, who is known for his success in turning around troubled companies, believes that the company's shares are deeply undervalued and has privately contacted the Alibaba board to express his views.
Cohen belief in Alibaba's potential for growth
Ryan Cohen Interest in Alibaba
In August of last year, Cohen first reached out to the Alibaba board to express his belief that the company can achieve double-digit sales and nearly 20% free-cash-flow growth over the next five years. Despite losing over 11% in the last year, shares of Alibaba have soared over 27% since the beginning of 2023.
In addition to his belief in Alibaba's potential for growth, Cohen has also suggested that the company's share-repurchase plan could be boosted by another $20 billion, bringing it to a total of $60 billion. This move is similar to the strategy that Cohen has implemented in other companies, such as Apple, where share repurchases have led to a significant increase in stock price.
Alibaba Presence
Cohen has also noted his admiration for Alibaba's management and their ability to achieve earnings growth while assembling quality assets. He has stated that his goal is to have a collaborative, long-term relationship with the e-commerce giant.
As one of the world's largest e-commerce companies, Alibaba has a significant presence in the global market. With Ryan Cohen's investment and ideas for growth, it will be interesting to see how the company continues to evolve and potentially surpass its current success
Institutions Holding BABA
- # of Institutions 1,299
- Shares Held 338M
- Call Options Held 58.2M
- Put Options Held 49.1M
About Alibaba Group Holding Ltd
- Ticker BABA
- Exchange NYSE
- Sector Consumer Cyclical
- Industry Internet Retail
- Shares Outstandng 2,647,539,968
- Market Cap $203B
- Description
- Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Comme...