Billionaire investor Ryan Cohen has significantly increased his stake in Alibaba Group, raising his holdings to approximately US$1 billion in recent months, according to The Wall Street Journal on February 20. This strategic move underscores Cohen’s growing confidence in the Chinese e-commerce giant amid a broader tech resurgence in China.
Ryan Cohen’s Growing Influence in Alibaba
Cohen, best known for co-founding pet retailer Chewy and spearheading GameStop’s meteoric rise during the meme stock frenzy, initially built a major stake in Alibaba in early 2023. At the time, he pushed for increased and accelerated share buybacks, arguing that the stock was significantly undervalued. His latest investment indicates continued faith in Alibaba’s long-term potential.
Alibaba’s Stock Soars on AI Optimism
Alibaba’s stock has been on an upward trajectory, surging over 60% this year. A key driver of this momentum is growing optimism surrounding Chinese artificial intelligence startup DeepSeek. Additionally, a high-profile meeting between President Xi Jinping and China’s top tech executives has further bolstered investor confidence in the sector.
Alibaba’s Strong Earnings and AI Investments
The company recently posted third-quarter revenue that exceeded analysts’ expectations, driven by robust year-end sales. In response to the booming AI market, Alibaba has announced plans to ramp up investments in artificial intelligence and cloud computing, positioning itself as a formidable player in the industry.
Retail Investors Take Notice
Ryan Cohen’s investment decisions have historically sparked retail investor enthusiasm. Given his reputation as the “meme king,” his increased stake in Alibaba could attract further attention from the retail investing community, potentially driving more interest and volatility in the stock.
