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Hong Kong-listed Alibaba shares jumped 4% Monday morning.
Kylie Shen | bloomberg | Getty Images
The performance of Alibaba shares listed in Hong Kong
In March, Alibaba announced a major restructuring of its business, which some analysts suggested could signal that the Chinese government may loosen its grip on the domestic tech industry.
Ushadi Kumarasiri, equity analyst at LightStream Research, said: a report It is published on the Smartkarma research platform.
“This suggests that optimism about the end of regulatory scrutiny may be premature, as new, broader regulations could be just as stringent,” Kumarasiri said.
Xun Yang, managing director of the Blue Lotus Research Institute, is Up on Alibaba After fine set Ant.
“We calculate that Ant Group will be worth $89 billion ~ of which $29.4 billion ~ is from Alibaba’s stake ~ given its 33% ownership in Ant Group. We suggest that such a valuation is an upside from the consensus,” Yang said, in a statement. Referring to Bloomberg’s review of Ant Group From $22 billion to just $57 billion.
“In our view, (Bloomberg’s) valuation range is quite low, as Ant Group is comparable to PayPal. With the end of the regulatory burden on Ant Group, we suggest that it could be valued at a multiplier much like PayPal, which suggests the upside to Bloomberg’s valuation.” Yang said.
On Saturday, Ant Group announced a share buyback that valued the company at $78.53 billion. According to state media CGTN. That’s less than Ant’s $315 billion valuation when it attempted to list in 2020.
Coomarasiri said the buyback “raises questions, especially if the company has plans for an initial public offering in the near future.”
“The company’s justification for the buyback, which includes providing liquidity to existing investors and attracting/retaining talented people through employee incentives, appears unnecessary if an IPO is imminent.”
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