Why Is Everyone Talking About Alibaba Stock?
Alibaba (NYSE: BABA) became one of the most talked about tech stocks on Reddit's WallStreetBets subreddit in early October, according to the latest data from Quiver Quantitative. Does that buzz indicate the Chinese tech giant, which has lost nearly half its value over the past 12 months, is finally primed for a fierce rebound? Let's see why investors are getting excited about Alibaba again.
In an SEC filing on Oct. 5, Berkshire Hathaway Vice Chairman Charlie Munger's Daily Journal Corporation (NASDAQ: DJCO) revealed that it had increased its position in Alibaba by 82% since July. Daily Journal bought 136,740 shares of Alibaba and raised its total stake to 302,060 shares, which is worth about $47 million today.
That big purchase makes Alibaba one of Daily Journal's largest investments, alongside Bank of America and Wells Fargo. It also represents a major vote of confidence for the company following Munger's controversial interview on CNBC back in June, during which he praised China's financial regulators and said they did the "right thing" in reining in the planned IPO of Ant Group, an Alibaba affiliate.
Source Fool.com
