In a recent report by The New York Times, it has been revealed that Alibaba Group Holding Ltd.'s shares have surged following news of founder Jack Ma and Chairman Joe Tsai buying up shares in the company. The stock has experienced a sharp decline over the past year, losing its position as China's most valuable company to rivals like Tencent Holdings Ltd. and PDD Holdings Inc.

According to unidentified sources familiar with the matter, Ma and Tsai have been actively purchasing Alibaba shares in recent months as the stock plummeted. This development has sparked confidence among investors, leading to a significant boost in the company's US-traded shares. In fact, the shares recorded an intraday gain of up to 8.6% in New York, the highest since last July.

The report also highlights how Ma, who had previously clashed with Beijing and kept a low public profile, took to an internal message board last year to urge Alibaba to "correct its course" and praised PDD for its success in market share due to its popular shopping app, Temu. Ma expressed his belief that with determination and hard work, Alibaba could regain its former success.

In addition to Ma's purchases, Tsai's family investment vehicle, Blue Pool Management, acquired nearly 2 million shares of Alibaba's US-traded stock worth around $152 million in the fourth quarter. This marks the first time Tsai's fund has invested in Alibaba shares since at least the last quarter of 2017, according to regulatory filings.

Ma, who still holds a major stake in Alibaba despite stepping down as executive chairman in 2019, reportedly purchased $50 million worth of stock in the last quarter. It is worth noting that Ma had been selling shares in the company over the past few years, resulting in his stake dropping below 5%. Last year, he disclosed plans to sell 10 million shares worth approximately $870 million through his own companies, JC Properties Ltd. and JSP Investment Ltd.

The purchases made by Ma and Tsai reflect their belief that Alibaba is currently undervalued after its significant stock decline from its peak in 2020. With a market valuation of approximately $175 billion, the company is now poised for a potential turnaround.

As news of the stock purchases spreads, investor sentiment towards Alibaba is likely to improve, offering renewed hope for the company's future growth and market position. Only time will tell if these investments by its founders will help Alibaba regain its former glory in the highly competitive Chinese market.