After months of speculation, Jack Ma makes his first appearance in the public. How’s this going to influence BABA stock?
The Chinese e-commerce giant, Alibaba (BABA) stock have jumped back with Jack Ma’s video going public. The 56-year-old owner of the company resurfaced for the first time since making comments against the government on its financial ecosystem.
On Wednesday, Ma appeared in an online video during an annual event he hosts to recognize rural teachers. The recording of the video call was backed by Zhejiang’s government—posted on a news portal that was verified by a spokesperson of Alibaba.
With Ma’s reappearance, a lot of doubts have been cleared like was he dead or was he in the government’s custody. However, there are still many unansweredquestions.
What’s Next for BABA?
Alibaba is the leading wholesale e-commerce platform in the world. A large number of Amazon sellers buy products from Alibaba, which shows that how big the company has gotten over the years.
The stock has soared strongly following Ma’s re-emergence. Alibaba’s owner said that he has been studying and thinking in the meantime. Jack Ma’s sudden appearance might be a signal that he has settled scores with the Chinese regulatory authorities. Though things need to get more transparent for investors as they want to know more. For now, Ma’s public appearance has positively impacted the stock and this will help the company to settle things down—a bit.
Previously, when Ma made comments against the government policies, the regulators suspended the public offering of his fintech company Ant Group Co. The IPO was scheduled to take place in Nov. 2020, which was valued at around $35 billion. If things get better with the regulators soon, Ant Group could make the IPO in the Shanghai stock exchange.
Talking about Alibaba’s financial performance in recent times, the company has done remarkably well. The boom in the e-commerce market has set things for giants like Alibaba and Amazon. The company reported a 30% increase in its year-over-year revenue to $22,838 million in Q3 2020. While the annual active consumers crossed 757 million, a surge of 15 million users.
Alibaba highlighted that they are entering less developed areas. This shows the success of the Chinese giant in expanding product offerings to meet diverse demands. With strong quarterly performances, the e-commerce company is keeping up with the modern trends in the market. And, Ma showing off to the public can be a big green signal to the investors.
Conclusion
The jump in stock price with Jack Ma’s entry shows that he has much influence on the firm. Investors want to know more about the future of Jack Ma to be sure of the company’s future. With that being said, Alibaba (BABA) is a well-positioned and market leader in its category. The increasing popularity and demand of the e-commerce industry will highly benefit Alibaba. Moreover, BABA stock is undervalued which means it has much more upside potential going forward.
