Alibaba Group Holding Ltd.'s co-founders Jack Ma and Joe Tsai have been buying shares in the company during the recent months, The New York Times reported on Tuesday.
In the fourth quarter, Tsai acquired approximately $151 million in Alibaba's US-traded shares through his Blue Pool Management family investment entity, as indicated in a securities filing on Tuesday. Simultaneously, Ma, who still holds a significant role, invested $50 million in Alibaba's Hong Kong-traded stock during the same period, according to an informed source. Despite the modest purchase amounts, considering Alibaba's market capitalization of around $171 billion, the identities of the buyers, Tsai and Ma, are expected to attract close scrutiny from both investors and policymakers.
The movement comes in an attempt to change a possible perspective held by investors about the e-commerce firm being currently underestimated, particularly given the drastic decline in its stock value compared to its growth in 2020. The company's stock rose 6.66% in the premarket session in the US following the report.
