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Alibaba insiders buy after $10.2 billion share sale for AI spending
The chairman and CEO bought about $15.3 million of shares combined at prices near the new-share offering level, shortly after Alibaba raised $10.2 billion by issuing 710 million new shares.
Alibaba executives bought company stock shortly after the firm raised $10.2 billion through a major share issuance intended to fund artificial intelligence infrastructure. Three days after Alibaba issued 710 million new shares at HK$112.70 each, Chairman Joseph Tsai bought about $10.3 million of shares and CEO Eddie Wu bought roughly $5 million, with both purchases made close to the offering price, according to Yahoo Finance.
The share sale priced about 8.4% below the prior close and diluted existing shareholders by about 3.6%, with investors weighing the cost of the company’s AI plans. Yahoo Finance also noted that the purchases were their first major reported open-market buys, coming soon after shareholders were asked to accept dilution.
Alibaba reported a 75% drop in quarterly profit on Aug. 20 as it spent more on AI infrastructure, even as revenue rose 9% to nearly $40 billion. Its AI Cloud and Compute Services revenue rose 45% to $7.2 billion, reflecting both the spending pressure and the growth areas management highlighted, the outlet said.
Alibaba is investing more than $50 billion in AI infrastructure over three years, and management believes the spending could pay off within 2.5 years. Yahoo Finance added that Alibaba trades at 18.9x forward earnings, above the sector average of 16.08x, and pays an annual dividend of $1.03 per share, with its latest dividend paid on June 11, 2026.