This is going to be a short post. Alibaba had just announced its September 2023 quarter results. Cloud segment growth at 2% fell a bit short and the management has also decided not to spin off this particular business unit for IPO. As a result, Alibaba share price dropped 10%. Well, the good news out of all this is that the management of Alibaba has declared its first ever annual dividend for the year ending 31 March 2023.
The dividend declaration is definitely a step in the right direction. The share repurchase programme of Alibaba has not much effect in boosting its share price and as a matter of fact, its share price has been languishing and spiraling downwards for a few years. If Alibaba has no better business or other investments, it should give back more of its earnings as dividends back to reward loyal investors. Management
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