Alibaba shares are trading lower on reports the company is said to consider a $5 billion convertible bond sale.
Portfolio Pulse from Benzinga Newsdesk
Alibaba shares are trading lower following reports that the company is considering a $5 billion convertible bond sale.
May 23, 2024 | 10:39 am
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Alibaba shares are trading lower due to reports that the company is considering a $5 billion convertible bond sale. This move could be seen as a way to raise capital, but it may also dilute existing shareholders' equity.
The news of a potential $5 billion convertible bond sale by Alibaba is likely to be perceived negatively by investors in the short term. Convertible bonds can dilute existing shareholders' equity, leading to a decrease in share price. The market's immediate reaction has been a drop in Alibaba's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100