- Alibaba founders Jack Ma and Joe Tsai purchased over $200 million in company shares as prices rebounded.
- This came after rival Pinduoduo briefly overtook Alibaba in market value last year.
- Their founder-led stock buys aim to help Alibaba regain the status lost amid China scrutiny since 2020.
Alibaba shares spiked after reports that co-founders Jack Ma and Joe Tsai purchased over $200 million of company stock in Q4 2022, making them the top individual shareholders. The buys follow a major slide in Alibaba’s share price from a 2020 peak of around $309 to under $70.
Staying positive over rival’s strong standing
Ma reportedly purchased around $50 million of shares, edging out Tsai’s $151.7 million stock buy for the mantle of largest single shareholder. Alibaba declined to comment on the South China Morning Post.
The show of faith from its founders came as rival Pinduoduo briefly overtook Alibaba in market capitalization last year.
Investor’s optimism towards share purchases
But Alibaba’s stock price rebounded to over $74 in New York trading today, reflecting investor optimism sparked by Ma and Tsai’s share purchases. The e-commerce titan has faced regulatory scrutiny in China since 2020 that clipped its wings.
SoftBank Group, a longtime backer, has trimmed its own Alibaba stake in recent quarters. However, Ma and Tsai’s buying spree signals that Alibaba’s founders see value in the company they created at current levels.
Their founder-led shareholding shakeup aims to help Alibaba regain its former high-flying status.
