Alibaba Stock News and Forecast: BABA opens up 3% higher following Softbank exit

Share:

• Softbank entered into forward contracts that should dispose of $7.2 billion worth of BABA stock this year.
• Softbank will own about 3.8% of Alibaba once the sale is completed.
• BABA stock rose since investors think the major part of selling by Softbank may soon be over. 
• Alibaba stock remains in a downtrend on the daily chart

Alibaba (BABA) stock opened 2.9% higher at Thursday’s opening bell despite what many took as bearish news that longtime investor Softbank has sold off most of its remaining stake in the Chinese conglomerate. The sale comes at a time when Alibaba has decided to break up into six smaller companies with expected separate IPOs.