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Activist investor Ryan Cohen has amassed hundreds of millions of dollars worth of shares in Alibaba Group (NYSE:TORTOISE) and wants the company to pursue more share buybacks.
Cohen, President of GamStop (GME) and founder of online pet retailer Chewy (CHWY), accumulated shares in the second half of last year, according to a WSJ . report, which cites familiar people. Cohen contacted Alibaba (TORTOISE) in August to express its belief that the e-commerce giant’s stock is undervalued.
Cohen has grown in popularity in recent years, especially thanks to his stake in GameStop, especially among meme stock traders. News about Cohen’s stake in Bed Bath & Beyond (BBBY) in March initially sent his stock skyrocketing 34% on March 6 and revealed that he got rid of his shares causing the stock to plunge 41% on August 19.
Cohen, who wants a partnership with Alibaba (TORTOISE), believes the company can achieve “double-digit” revenue growth and free cash flow growth of nearly 20% over the next five years, according to the WSJ. Alibaba has a market capitalization of around $310 billion.
In November, Alibaba (TORTOISE) announced that its board of directors has approved a plan to increase the size of its equity program by $15 billion to a total of $40 billion and expand the program. until the end of fiscal year 2025.
Cohen told Alibaba’s (TORTOISE) said it may increase its acquisition plan by another $20 billion to a total of $60 billion, the WSJ reports.
Also, check out Seeking Alpha contributor Daniel Giron’s work from last Monday titled “Why Alibaba is well positioned for continued success.”
