Chinese e-commerce giant Alibaba announced a plan to buy back its shares for $35 billion. The company's owners are thus demonstrating that the company has potential, although financial results for the last quarter did not live up to expectations. CNBC writes about this.
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Financial results
The company reported revenue of 260.35 billion yuan ($36.6 billion) – expected 262.07 billion yuan.
Revenue rose only 5% year-on-year, slowing compared to previous quarters.
Net profit Alibaba fell 69% year-on-year to 14.4 billion yuan in the December quarter.
Share buybacks
Amid the negative report, owners said they would buy back $25 billion of their own shares to March 2027. The total amount of repurchased assets will be $35.3 billion.
Market reaction
The company's shares on the NYSE are showing growth – over the last 5 days the shares have increased by more than 9%, although over the last 6 months the shares fell by almost 19%.
On the topic: Jack Ma buys back Alibaba shares when their value fell by 35%
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