What's Going On With Alibaba Stock Wednesday?

Alibaba Group Holding Limited BABA co-founder Jack Ma reportedly decided not to reduce his stake in the company following its most significant selloff in over a year. 

Also Read: Alibaba Dumps Cloud Unit Spinoff

Despite plans to sell 10 million shares worth approximately $870 million, Ma has not sold any shares because Alibaba's stock price has not reached his target level, Bloomberg cites from an internal memo by Alibaba's Chief People Officer, Jane Jiang Fang.

The decision to hold onto his shares aligns with Ma's confidence in Alibaba's future despite the company's recent challenges, including scrapping plans to spin off its $11 billion cloud business. This move and other factors led to a $22 billion drop in Alibaba's market value in a single day.

Alibaba is navigating a complex environment, including the escalating U.S.-China tech rivalry and competition from new players like ByteDance Ltd's Douyin. Despite these challenges, Ma believes in the long-term value of Alibaba's businesses.

Jiang's note also revealed that Ma's family office had planned to sell shares to fund investments in agricultural enterprises and charities. The sale, arranged earlier this year with a broker, was intended to occur at a price set in August. However, the broker did not anticipate the timing of the sale's disclosure, coinciding with Alibaba's financial results.

The stock has lost 14.2% YTD.

Price Action: BABA shares traded higher by 0.61% at $79.42 premarket on the last check Wednesday.