Alibaba (NYSE:BABA), the Chinese tech giant, disappointed investors in 2023 while many of its American counterparts delivered strong returns. Alibaba stock has declined almost 40% in the last 12 months, but new catalysts have emerged to drive the stock higher in 2024. Although regulatory risks need to be monitored carefully, I am bullish on Alibaba stock.
SoftBank Finally Completes Divesting Alibaba
SoftBank (OTC:SFTBF), the Japanese investment firm led by billionaire Masayoshi Son, was one of the first institutional investors to believe in Alibaba. The investment firm invested $20 million in Alibaba in 2000. In late 2021, SoftBank entered into a forward contract with its subsidiary Skybridge to divest its Alibaba stake. This contract allowed SoftBank to repurchase Alibaba shares from Skybridge if needed.
On January 25, SoftBank announced the settlement of these prepaid forward contracts with Skybridge, reportedly booking a profit of…
