Shares of Alibaba Group Holding Limited (BABA) are up more than 8% in pre-market on Tuesday after the Chinese e-commerce giant upsized its share buyback to $25 billion from $15 billion.
The company said the share buyback program will be effective for a two-year period through March 2024.
Earlier, Alibaba had expanded its program from $10 billion to $15 billion last August.
The company said it had already re-purchased about $9.2 billion American depositary shares under the previously announced share repurchase program, as of March 18.
“The upsized share buy-back underscores our confidence in Alibaba’s long-term, sustainable growth potential and value creation,” said Toby Xu, Alibaba’s deputy chief financial officer. “Alibaba’s stock price does not fairly reflect the company’s value given our robust financial health and expansion plans.”
Alibaba stock lost its value by more than 50% in the last one year. It closed Monday’s trade at $103.59, down $4.71 or 4.35%.
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