Why Jack Ma's Departure From Ant Group Is Not a Reason to Buy Alibaba
Shares of Alibaba (NYSE: BABA) rallied amid news at the start of the year that Jack Ma gave up control of Ant Group, a fintech serving as an affiliate company of Alibaba. Ma, who co-founded Alibaba, held on to his stake in Ant Group after resigning from Alibaba's board in October 2020.
Admittedly, that move could bring a considerable cash infusion to both Ant Group and Alibaba. Nonetheless, it also serves as a reminder of why investors should probably avoid Alibaba stock.
Alibaba, the Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology, was started by Ma back in 1999 and had grown into a $500-plus billion conglomerate. Jack Ma's troubles with the Chinese government began after he stepped down from Alibaba's board in September 2019. At that point, Ma's controlling interest in Ant Group (of which Alibaba retained a 33% stake) was the only obvious influence the co-founder held over his former company.
Source Fool.com
