Alibaba Group Holding Ltd (BABA) stock has gained 5.63% on April 12 premarket as of this writing. The stock closed at $223.31 per share on Friday after losing 2.16%.
Let’s try to find out the reason behind its early morning surging
Alibaba not challenging the antitrust fine
Alibaba said on Monday, April 12, 2021, that it is not going to challenge the $2.8 billion fine by Chinese regulators and said that it will accept the fine and ruling. The company was fined after an inquiry determined that it had abused its market position for years.
Alibaba also said that it’s unaware of any other probes by China’s antitrust regulator.
Expanding grocery business
On April 5, 2021, some reliable sources confirmed that Alibaba is expanding its presence in the grocery market. Recently, it invested $750 million with DST Global in a China-based grocery app, Nice Tuan.
Nice Tuan operates in 1,598 cities across China and generates 15 million orders per day.
Pricing of Offering of $5 Billion of Senior Unsecured Notes
On February 5, 2021, Alibaba Group Holding announced the pricing of an underwritten registered public offering of US$5 billion aggregate principal amount of U.S. dollar-denominated senior unsecured notes consisting of:
- US$1,500,000,000 2.125% notes due 2031 at an issue price per note of 99.839%;
- US$1,000,000,000 2.700% notes due 2041 at an issue price per note of 99.265%
- US$1,500,000,000 3.150% notes due 2051 at an issue price per note of 99.981%;
- US$1,000,000,000 3.250% notes due 2061 at an issue price per note of 99.978%.
Quarter ended December 31, 2020 highlights
for the reported quarter Ali baba
- Revenue was $33,883 million.
- Income from operations was $7,510 million
- Net income was $12,173 million
- Non-GAAP net income was $9,074 million
Despite the hefty fine, Alibaba stock soared in other markets such as the Hongkong stock exchange, and the company’s policy of not fighting with the regulators is working for it and providing stability to its stock price.