BABA Stock Alert: The Softbank Chatter Taking a Bite Out of Alibaba Today

Alibaba (NYSE:BABA) stock is on the move Monday as investors discuss a recent filing with the U.S. Securities and Exchange Commission (SEC) and what Softbank (OTCMKTS:SFTBY) might have to do with it.

Alibaba Group (BABA stock) headquarters sign located in Hangzhou China

Source: Kevin Chen Photography /

This SEC filing saw Alibaba register an additional 1 billion shares of its stock in the U.S. As new share offerings and registrations often do, this sent BABA stock lower today. However, there’s more to it than just that.

Some analysts, including those with Citi, believe that this stock offering could be a sign that Softbank intends to sell some of its stake in the Chinese e-commerce company. Softbank currently holds 5.39 billion shares of ordinary Alibaba stock, which is the same as 673.76 million American depositary shares.

Softbank’s stake in BABA is sitting at 24.8%. The company has held its stake in Alibaba since its initial public offering (IPO). However, the recent tech stock selloff, as well as the SEC filing, could mean that Softbank is looking to reduce its stake in the company, reports Bloomberg.

Investors in BABA stock are also waiting for the company to release its earnings report for its fiscal third quarter of 2022. That should be coming out sometime this month but Alibaba has yet to reveal when it will release those results.

What we do know is that BABA stock is seeing a decent amount of trading early this morning. As of this writing, more than 10 million shares of the stock have changed hands. That’s not a bad start and is quickly heading toward the company’s daily average trading volume of 23.9 million shares.

BABA stock is down 6% as of Monday morning.

There’s more stock market news for investors to sink their teeth into below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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