GameStop CEO Ryan Cohen Expands Personal Stake in Alibaba to $1 Billion

GameStop CEO and billionaire investor Ryan Cohen has increased his personal investment in Alibaba, acquiring approximately 7 million shares valued at around $1 billion, according to a report by The Wall Street Journal.

Sources familiar with the matter described Cohen’s move as a strategic investment based on confidence in China's long-term economic growth. When contacted by CNBC, Cohen was not immediately available for comment.

The development comes after Alibaba reported a significant increase in profits for the December quarter, driven by strong performance in its Cloud Intelligence unit and e-commerce business. Following the earnings announcement, Alibaba's stock surged by 8.1% on Thursday.

In 2023, Cohen urged Alibaba to increase its stock buybacks, arguing that the company was significantly undervalued. His stance aligned with growing investor sentiment that Alibaba had room to enhance shareholder returns through repurchase programs.

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Meanwhile, Alibaba’s founder Jack Ma, who has largely remained out of the public eye since 2020, attended a rare closed-door meeting on Monday, led by Chinese President Xi Jinping. During the gathering, Xi encouraged private businesses to "show their talents" and strengthen their confidence in the economic environment.

Cohen, best known for his role in the GameStop trading frenzy of 2021, has been working on restructuring the struggling video game retailer. As one of the co-founders of Chewy, he has emphasized cost-cutting and operational efficiency in his leadership at GameStop, focusing on maintaining profitability despite a lack of growth in the sector.

Earlier this month, CNBC reported that GameStop was considering investing in Bitcoin and other cryptocurrencies as part of its broader corporate strategy.