- NYSE:BABA gained 3.77% during Wednesday’s trading session.
- Softbank has denied rumors that it is selling its stake in AliBaba.
- AliBaba is teaming up with Salesforce.com for its new Social Commerce project.
NYSE:BABA bounced back to positive territory for the year on Wednesday, as the Chinese eCommerce and tech giant shrugged off Monday’s sell off. Shares of BABA gained 3.77% and closed the trading session of $126.50. It was another green day for the broader markets as investors put the January correction further into their rear-view mirrors. The NASDAQ jumped by 2.08% as the tech-heavy index continues to erase its losses from the previous month. The S&P 500 gained a further 1.45% and the Dow Jones added a further 305 basis points for its third straight positive session of the week.
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What made AliBaba investors excited on Wednesday? Its largest shareholder, Softbank, denied the rumors that had surfaced earlier in the week about selling its stake in AliBaba. The Japanese tech conglomerate owns a more than 24% stake in AliBaba, and a report from Citi and other financial publications predicted that it would be selling these shares to raise capital. Well, on Wednesday, Softbank denied the rumor, which sent both Softbank and AliBaba’s shares soaring in their respective Asian markets. This is welcome news for both AliBaba and its ADR investors in the US.
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In another business-related announcement from the firm, Alibaba and US CRM leader Salesforce.com (NYSE:CRM) are teaming up for a new social eCommerce platform. The site will target the Chinese market where Salesforce.com says that the lines between eCommerce retail and social media are blurred. The platform will be called Salesforce Social Commerce, and while not many details have been released yet, it could be another profitable revenue stream for both companies.
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