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GameStop’s Chairman Ryan Cohen has significantly bolstered his investment in Alibaba, acquiring approximately 7 million shares valued at around $1 billion, according to a report from The Wall Street Journal. This strategic move reflects Cohen’s confidence in the long-term prospects of China’s economic growth.
Although Cohen was unavailable for immediate comment, this development follows a notable increase in Alibaba’s profits during the December quarter, driven by robust performance in its Cloud Intelligence and e-commerce divisions. Consequently, Alibaba’s stock price jumped by 8.1% on the day the news broke.
In previous discussions in 2023, Cohen had urged Alibaba to enhance its stock buyback program, arguing that the company’s shares were significantly undervalued.
Additionally, Alibaba’s influential founder, Jack Ma, resurfaced recently to participate in a rare meeting with Chinese President Xi Jinping, where the president encouraged private enterprises to showcase their capabilities and cultivate confidence in a “new era” for business operations in China.
Cohen’s rise to prominence began with his role in GameStop, where his actions were integral to the trading frenzy that captivated Wall Street in 2021. As CEO of the gaming retailer, Cohen has implemented a robust turnaround strategy focused on cost reduction and operational efficiency, aiming to make the company profitable despite stagnation in growth.
Reports have also indicated that GameStop is exploring investments in bitcoin and other cryptocurrencies, potentially diversifying its business strategy further.
— Click here to read the WSJ story.
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