GameStop Chairman Ryan Cohen has made a significant investment in Chinese e-commerce giant Alibaba, increasing his personal stake to roughly 7 million shares, worth about $1 billion. This move, reported by The Wall Street Journal, is seen as a bullish bet on China’s economic growth in the long term.
The news comes after Alibaba reported a sharp increase in profits in the December quarter, driven by strong performance in its Cloud Intelligence unit and e-commerce segment. As a result, Alibaba’s stock surged 8.1% on Thursday.
In 2023, Cohen reportedly urged Alibaba to increase buybacks, believing that the stock was undervalued. This investment in Alibaba marks a new venture for Cohen, who is best known for his involvement in meme stock GameStop and his role in triggering a historic trading frenzy on Wall Street in 2021.
As CEO of GameStop, Cohen has been leading a turnaround in the company by focusing on cost-cutting and streamlining operations to ensure profitability. Recently, there have been reports that GameStop is considering investing in bitcoin and other cryptocurrencies under Cohen’s leadership.
It is worth noting that Alibaba’s founder, Jack Ma, who has maintained a low profile since 2020, recently attended a closed-door meeting with Chinese President Xi Jinping. During the meeting, President Xi urged private businesses, including entrepreneurs like Ma, to showcase their talents and strengthen their confidence in a “new era” for business activity in China.
Overall, Cohen’s investment in Alibaba reflects his confidence in the company’s long-term prospects and his strategic approach to diversifying his investment portfolio. This move further solidifies Cohen’s reputation as a savvy investor and a key player in the world of finance.
For more details on Ryan Cohen’s investment in Alibaba, you can read the full story on The Wall Street Journal’s website.
