Shares in Alibaba were surging Tuesday after the Chinese e-commerce giant announced it would increase the size of its stock buyback program to $25 billion from $15 billion.
The move to boost share repurchases is “a sign of confidence about the Companys continued growth in the future,” Alibaba said in a statement. The buyback program is slated to be effective for two years through March 2024.
There's some good news about Alibaba (BABA) stock recently emerging. Big new buyback plans are putting new life into Alibaba. So much so, in fact, that I'm upgrading my stance from bearish to neutral. Alibaba is making a better and better case for itself almost daily. However, there are still serious macroeconomic risks that could puncture the company's plans before they can really begin. The last year for Alibaba stock has been a disaster, but signs of recovery are present. Alibaba has seen brief rallies in its overall downward progression. These seldom last more than a few weeks at a time. The latest rally, however, proved much sharper than normal.
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