Alibaba's Share Price Decline
The share price of Alibaba, the Chinese tech giant co-founded by Jack Ma, has experienced a significant decline, resulting in a halving of Ma's wealth from its peak in late 2020. This sustained slump in the company's stock price has prompted Ma to reverse his plans to sell shares for his other investments.
Abandoned Spin-Off Plans
Last week, Alibaba dropped its plans to spin off its $11 billion cloud business, which caused a negative response in the stock market. As a result of this decision, the company's stock sank, wiping out $26 billion in value over a span of two days.
Concerns and Reassurance
Investors and employees alike expressed concerns about Ma's decision to sell the company's stock. However, Alibaba sought to reassure its staff by issuing an internal memo stating that Ma has not sold any shares. Jane Jiang Fang, the chief people officer, emphasized that Ma intends to hold onto his Alibaba stake, and the timing of the disclosure was coincidental and led to a severe misunderstanding.
Ma's Continual Stock Sell-Off
Jack Ma has been steadily selling down his Alibaba stake since his departure from the company's board in 2020. He stepped down as CEO in 2019. The recent sell-off of shares has been the sharpest decline for Alibaba in over a year, resulting in a decrease in Ma's fortune to around $30 billion, a 9% decline year-to-date.
Backlash and Regulatory Actions
Alibaba's share price has been under pressure since Ma's criticism of Beijing, which triggered a backlash on his companies in late 2020. Additionally, China implemented regulatory actions on the country's tech sector, causing a massive decline in the market value of several Big Tech companies, including Alibaba. However, Beijing has recently signaled an easing of regulatory actions, offering some relief to the industry.
Current Stock Performance
Alibaba shares in the US closed flat at $78.96 on Wednesday, with a 10% decline year-to-date. It remains to be seen how the company's stock price will perform in the future.
Business Insider has reached out to Alibaba for comment but has not received an immediate response.
Original Article Source: Business Insider
—————————————————————————————————————————————
By: htan@insider.com (Huileng Tan)
Title: Jack Ma Reverses Plan to Sell Alibaba Shares Amid Stock Slump
Sourced From: www.businessinsider.com/jack-ma-reverse-alibaba-share-sale-cloud-spinoff-china-tech-2023-11
Published Date: Thu, 23 Nov 2023 05:31:36 +0000
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