Will SoftBank's share sale affect Alibaba's P/E ratio?

SoftBank closed out a very profitable investment in Alibaba, but the share sale alone should not have a lasting negative impact on Alibaba's P/E ratio as SoftBank was merely a passive investor in the e-Commerce company.

Why did Alibaba lose $12B in market value?

Shares of Alibaba ( NYSE: BABA) lost a combined $12B in market value yesterday after it was reported that anchor shareholder SoftBank Group, a Japanese investment conglomerate run by Masayoshi Son, is selling down its stake in the Chinese e-commerce start-up.

Will SoftBank cut its stake in Chinese ecommerce group?

The forward sales, revealed through a Financial Times analysis of regulatory filings sent by post to the US Securities and Exchange Commission, will eventually cut SoftBank’s stake in the $262bn Chinese ecommerce group to just 3.8 per cent.

How much did Alibaba sell in a prepaid forward contract?

The Japanese group, led by billionaire founder Masayoshi Son, has sold about $7.2bn worth of Alibaba shares this year through prepaid forward contracts, after a record $29bn selldown last year.