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Alibaba proposes Hong Kong share placement worth $10 billion
The offering was oversubscribed nearly three times, and Alibaba said all proceeds will fund chips, data centers and AI model development.
- On Sunday, Alibaba announced plans to raise $10.2 billion via share sale, while "Big Short" investor Michael Burry revealed he recently exited his entire position into rival JD.com.
- Alibaba's June-quarter earnings showed net income plunging 75% as capital expenditure surged 75% to nearly $10 billion, prompting the company to fund AI infrastructure expansion.
- Shares slid 9% on Friday and fell as much as 10% in Hong Kong on Monday; insiders Tsai and Wu purchased roughly HK$118.2 million in stock combined.
- Burry wrote, "I cannot bless share issuances," stating Alibaba "would have to fall by half" before he would consider buying back in.
- Alibaba's US-listed stock remains over 60% lower than its 2020 peak, leaving the company a turnaround bet until AI revenue outpaces spending.
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Alibaba raises US$10 billion in record Hong Kong share sale
Alibaba Group Holding Ltd (阿里巴巴) raised HK$80 billion (US$10.2 billion) in Hong Kong’s biggest follow-on offering, underscoring its willingness to amass and spend vast sums to take the lead in global artificial intelligence (AI).The online retail giant-turned-AI player sold 710 million shares at HK$
·Taipei, Taiwan
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Michael Burry Says He Would Buy Alibaba Stock When It Crashes 50%. You Shouldn’t Wait That Long.
Michael Burry has said that he swapped Alibaba for JD.com and would consider BABA again only when it falls by 50%. However, BABA seems to offer good value at these prices.
·Chicago, United States
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Coverage Details
Total News Sources125
Leaning Left15Leaning Right25Center27Last UpdatedBias Distribution40% Center
Bias Distribution
- 40% of the sources are Center
40% Center
L 23%
C 40%
R 37%
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