Alibaba buys 9% stake in Zulily

Alibaba Holding Group Ltd. went on a buying spree at Zulily this month, but the Chinese Internet retailer wasn't buying baby shoes.

Alibaba purchased about 4.8 million class A shares in Zulily, about 17% of Zulily’s Class A stock.The stake, valued at more than $150 million, was disclosed in a securities filing that showed Alibaba this month spent $56 million buying Zulily stock as the U.S. company’s shares plunged following a disappointing earnings report.

Zulily posted a miss on revenues of about $307 million and a second quarter revenue forecast well below Wall Street expectations.

However, Zulily also recently launched its first major website redesign, which will provide a more customized daily shopping experience for each of its customers.