Connect with us

Hi, what are you looking for?


Alibaba stock opened 10% up on Tuesday: find out why

Shares of Alibaba Group Holding Ltd (NYSE: BABA) opened more than 10% up on Tuesday after the tech behemoth announced plans of reorganising into six businesses.

Details of the restructuring plan

The Chinese multinational expects to unlock significant shareholder value as it splits into the following units:

Cloud Intelligence Group

Taobao Tmall Commerce Group

Local Services Group

Cainiao Smart Logistics Group

Global Digital Commerce Group

Digital Media and Entertainment Group

Each of these groups will have its own board of director and a chief executive. Daniel Zhang, though, will remain the CEO and Chairman of the overall company. In his letter to employees, he wrote:

Each company can pursue independent fundraising and IPOs when they’re ready. This will empower all our businesses to become more agile, enhance decision-making and enable faster responses to market changes.

Versus its year-to-date high, Alibaba stock is still down more than 20%.

Is Alibaba stock worth investing?

In January, activist investor Ryan Cohen built a stake in the Hangzhou-headquartered firm as Invezz reported HERE. Alibaba Group will likely get to relish regulatory advantages with the new structure as well.

Reacting to the announcement, Baird analyst Colin Sebastian reiterated his “buy” rating on Alibaba stock. His $120 price objective suggests about a 30% upside from here.

Alibaba’s Cloud, Logistics, and International Commerce units may be worth more as individual entities rather than components of Alibaba Group.

Last month, Alibaba reported its financial results for the third quarter that handily topped Street estimates.

The post Alibaba stock opened 10% up on Tuesday: find out why appeared first on Invezz.

    You May Also Like


    On the surface, index and stock options are very similar. Still, there are some differences that traders should be aware of. Understanding these differences...

    Latest News

    The FBI was not forthcoming with the Trump, Biden and Pence classified documents during a House Intelligence Committee briefing last week, and lawmakers still...

    Editor's Pick

    iBASIS and Sequans have been selected by Actility to meet its delivery schedule for eSIM and iSIM iBASIS and Sequans now considered frontrunners in...


    American Airlines is getting rid of its traditional frequent flyer award chart as the carrier moves toward dynamic pricing for mileage redemptions, the latest shift in its lucrative AAdvantage...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024