3 CEOs Are Buying Millions of Dollars of Their Beaten-Down Stocks

The CEOs of Alibaba, Klarna, and CoStar Group have collectively made more than $20 million in insider stock purchases despite steep share price declines in 2026. Alibaba CEO Eddie Wu and director Joseph Tsai bought about $15 million in shares, and analysts see over 60% upside with a consensus price target near $189. Klarna CEO Sebastian Siemiatkowski purchased nearly $10 million in shares after a post-earnings drop, while CoStar CEO Andrew Florance bought shares as that stock fell roughly 50%. Insider purchases are one of many signals that investors can use to gauge the outlook of a stock. While insider buys are one piece of a larger picture, they can be particularly notable when made by a company’s top executive: the CEO. Amid a run of poor performance in 2026, the CEOs of three companies just signaled significant confidence in the path forward. Combined, their purchases total more than $20 million across their respective companies, suggesting the market may be undervaluing these three names.

First up is one of the largest purchasers of AI hardware outside of the United States, Chinese e-commerce giant and cloud platform Alibaba Group NYSE: BABA. This giant’s stock has run into trouble in 2026 as the company invests both in AI initiatives and its e-commerce network. These investments have put significant pressure on Alibaba’s profitability, with its non-adjusted net income falling 75% year-over-year (YOY) last quarter. However, the company's cloud business grew impressively by 45% YOY, and its AI-related product revenue grew by triple digits for the twelfth quarter in a row. Additionally, Alibaba's Zhenwu chips are now being used by more than 650 cloud customers. However, profitability concerns have outweighed these positive developments, leaving shares down more than 20% on the year. Amid this backdrop, multiple top insiders are buying in. This includes CEO Eddie Wu and director Joseph Tsai. In total, their recent purchases come in at just over $15 million. These buys came in near $14.30 per ordinary Alibaba share. With one ordinary share equal to eight of Alibaba’s American Depositary Receipts (ADR), the purchase prices were near $114.40, very close to the NYSE-listed stock's recent levels. Compared with their very large BABA holdings, these insiders' buys were not huge; for example, Wu’s position increased by around 2.6%. However, the purchases do signal confidence from key players, providing a moderately bullish signal for the stock.

Payments platform and fintech company Klarna NYSE: KLAR was one of the market's more discussed IPOs in 2025. Shares popped 15% on their first day of trading, demonstrating the initial excitement around the company. However, the stock’s trajectory has been nearly all downhill since. Shares are down more than 65% from that point and have seen significant bouts of volatility along the way. Following Klarna’s last three earnings reports, the stock has moved up or down by 20% or more the following day. Klarna’s latest report was on the wrong side of the equation, with shares plummeting 22.8%. Despite beating on revenue, earnings per share (EPS), and raising profitability guidance, its...