GameStop CEO and activist investor Ryan Cohen has significantly increased his personal stake in Alibaba Group, the Chinese e-commerce giant, to approximately 7 million shares, valued at around $1 billion. This move reflects Cohen’s bullish outlook on China’s long-term economic growth prospects.
Cohen initially began investing in Alibaba in 2023, when he advocated for the company to accelerate its share buyback program, arguing that its stock was undervalued. His latest investment underscores his confidence in Alibaba’s performance and China’s economic trajectory. The increase in his holdings comes amidst Alibaba’s robust financial performance, including its fastest revenue growth since late 2023 and a recent 8.1% surge in stock price following strong quarterly results. The company’s Cloud Intelligence and e-commerce divisions have been key drivers of this growth.
Cohen’s involvement with Alibaba aligns with his reputation as a strategic investor. Known for his leadership at Chewy and GameStop, he has a history of engaging with companies to unlock shareholder value. His investment in Alibaba is seen as a significant endorsement of the company’s potential and China’s evolving economic landscape.