What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding Limited BABA stock which has gained 5% YTD, is trading lower Tuesday as it remains engaged in its organizational overhaul to unlock shareholder value.

Several global investors, including Warburg Pincus, Canada Pension Plan Investment Board, Carlyle Group Inc, and GIC Pte, disassociated themselves from Jack Ma-backed Ant Group Co's proposed share buyback after the Chinese fintech's valuation lost over 70%.

Also Read: Ant Group's Restructuring Plans

A few money managers, including Fidelity Investments and T. Rowe Price Group, Inc TROW, have agreed to sell their shares, Bloomberg cites familiar sources.

In July, China signaled an end to its regulatory overhaul on Alibaba's fintech affiliate with a penalty of 7.123 billion yuan ($984.33 million).

Also, last month, Alibaba decided to hold on to its stake in Ant Group, declining to participate in the share buyback plan.

Pension funds and private equity firms that took part in early funding rounds for Ant in 2018 faced financial losses from the buyback after the company's value plunged after China abruptly scrapped the initial public offering in 2020.

Ant agreed to buy back up to 7.6% of its shares in July. The repurchase valuation of about 567.1 billion yuan ($79 billion) is a massive decline from an estimated $280 billion market cap ahead of the planned IPO.

Some Chinese state-owned shareholders are looking to join the buyback.

Meanwhile, Ant looks to split off its international business, blockchain, and database management services.

Price Action: BABA shares traded lower by 3.48% at $93.20 on the last check Tuesday.