Jack Ma reckons that investigations are a good way for investors to know about the company
Alibaba Group Holding Ltd (NYSE:BABA) CEO Jack Ma said that any investigations about the company are not that bad as they help investors to understand its business model. In an interview given to Reuters, the Chinese billionaire said that the investigations are a good way for investors to understand Alibaba’s business practices. Further to this, Mr. Ma also said that he is not afraid of any lawsuits as he said that “if you want to sue us, sue us.”
The recent statement can be connected with his statement that he gave a month ago, in which he reckoned that it will take time for investors to understand Alibaba’s business model. The views came as he responded to the SEC investigations about the firm’s accounting practices. Questions about Alibaba’s growth have also been common among investors, as its share prices have not performed up to the street’s expectations.
Jack Ma gave the statement in a recent philanthropic event held by Alibaba Foundation. He further said that China has more billionaires than any other country, but there’s very little effort towards charity as these people tend to prefer low-profile lifestyles. The Chinese governments are now a bit stricter towards NGOs, as these organizations are not that “authentic,” he added. The recent statement suggests that Mr. Ma has got a lot of substance to defend the position of his company and will respond to any accusations.
The e-commerce giant has recently been trying to expand its presence into other areas such as app-distribution, while Jack Ma expects that the e-commerce business would grow exponentially in the coming five years. The street also remains bullish on the company as renowned houses such as Morgan Stanley and Goldman Sachs expect a higher upside, while a few of them have given Hold ratings to the stock. The consensus TP stands at $94.21, which also offers 19% upside from the current levels. Let’s see if the recent statement helps to boost investor sentiment.