Alibaba's $25 Billion Buyback Is Less Meaningful Than You Think
Alibaba's (NYSE: BABA) stock recently popped after the Chinese tech giant boosted its buyback authorization from $15 billion to $25 billion, which represents roughly 8% of its current market capitalization.
In a statement, Deputy CFO Toby Xu said the "upsized share buyback underscores our confidence in Alibaba's long-term, sustainable growth potential and value creation," and that its current stock price -- which remains more than 60% below its all-time high -- "does not fairly reflect the company's value given our robust financial health and expansion plans."
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Source Fool.com
