Alibaba Electronics Corp. is surging after the online retailer said it plans to buy an unspecified number of assets, including its electronics and other technology businesses.
Alibaba said it will invest in equipment and infrastructure to expand its business globally, and that the company plans to hire at least 500 workers in the U.K. by the end of the year.
Alibaba stock rose nearly 5 percent Thursday morning, the most in about four months.
The company is already known for its investments in Alibaba stock, which soared nearly 5,000 percent in the first half of 2017.
Alibaba’s stock has been on a tear, rising nearly 9,000% in the past year.
“The business is doing well, but it’s still in a lot of turmoil,” said Andrew Wozniak, an analyst with Jefferies in New York.
“It’s very challenging to invest in technology and other companies, especially when you have this kind of massive and persistent decline.”
WSJ’s Mark Lohmann reports.
Photo: AP Alibaba’s shares jumped 6 percent to nearly $4.62 after the news was announced, but the company is not the only tech company that has seen a surge in shares.
Twitter Inc. rose 6 percent after the tech company announced a $1 billion funding round.
Uber Technologies Inc. also announced a funding round, raising $1.5 billion.
But Alibaba’s rise was more significant because of its larger scale, according to Peter Tinsley, an investment analyst at PNC Financial Services.
Alibaba is now the second-largest online retailer in the world, after Amazon, he said.
“They are definitely in the midst of a great expansion and a very strong business,” Tinsler said.
Alibaba, which started as an online marketplace for Chinese goods, has become one of the biggest technology companies in the country, with more than 50 percent of its revenue coming from online shopping.
Alibaba has struggled to expand overseas as its technology businesses have been hit by a slump in Chinese demand and a crackdown on counterfeiting.
Alibaba did not disclose the number of employees that will be hired.
The announcement of the investment comes a day after Alibaba said that it had reached an agreement with American billionaire Michael Dell to buy more than 5 million shares.
Dell, a major shareholder in Alibaba, also owns the Seattle Seahawks football team.
Alibaba recently hired an executive to lead its consumer product team.