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Alibaba’s Hong Kong Shares Declined by 5%

May 23, 2024 - techbullion.com
Alibaba's shares listed in Hong Kong fell by more than 5% following rumors that the company is considering offering convertible bonds to raise $5 billion. The company's performance was the third poorest in the Hang Seng index. The Chinese tech giant has had a turbulent year, with a significant restructuring and an 86% decline in net earnings for the fourth quarter. However, the company has been trying to attract investors by increasing its share buyback program by $25 billion and promising to reignite growth with additional investments.

Alibaba is also planning to expand its market share in the artificial intelligence and cloud service sectors. The company recently unveiled the latest version of its Tongyi Qianwen large language model, which powers AI applications, and reduced prices on a variety of its LLMs by up to 97%. Despite the recent decline, Alibaba's shares have been trending higher this year, with gains of 4.03% on the Hong Kong Stock Exchange and 6.67% on the New York Stock Exchange.

Key takeaways:

  • Alibaba's shares listed in Hong Kong fell more than 5% due to a rumour of a $5 billion convertible bond offering.
  • The company's performance was the third poorest in the Hang Seng index on the day of the share drop.
  • Alibaba plans to increase its market share in the artificial intelligence and cloud service sectors, and has recently reduced prices on its large language models by up to 97%.
  • Despite the recent share drop, Alibaba shares have been trending higher this year, with gains of 4.03% on the Hong Kong Stock Exchange and 6.67% on the New York Stock Exchange.
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