Alibaba Group Holdings Ltd has announced a new organizational and governance structure to promote innovation and capture opportunities in their respective markets and industries. The company’s stock prices surged following the announcement. Against this backdrop, social media (Twitter and Reddit) conversations around Alibaba have spiked dramatically with a gain of 80% in the last seven days (22-29 March 2023), reveals the Social Media Analytics Platform of GlobalData, a leading data and analytics company.
Under the new organizational restructure plan, the Chinese e-commerce giant will have six major business groups: Cloud Intelligence Group (including cloud, AI, DingTalk and other businesses), Taobao Tmall Business Group (including Taobao, Tmall, Taobao Deals, Taocaica\i, 1688.com and other businesses), Local Services Group (including Amap, Ele.me and other businesses), Global Digital Business Group (including Lazada, AliExpress, Trendyol, Daraz, Alibaba.com and other businesses), Cainiao Smart Logistics, and Digital Media and Entertainment Group (including Youku, Alibaba Pictures and other businesses).
Smitarani Tripathy, Social Media Analyst at GlobalData, comments: “Social media influencer sentiments were mostly positive on Alibaba’s plan to restructure its business. Twitter influencers opine Alibaba’s new business plan can restore confidence for private business in China again, which has been undermined in recent years due to increasing tech regulation and COVID-related restrictions. Some influencers have even suggested that other tech giants, such as Amazon, should consider spinning off their businesses to unlock their true value.”
Below are a few popular influencers’ opinions about Alibaba on GlobalData Social Media Analytics Platform:
- Arjun Kharpal,China Tech Correspondent at CNBC: “#China rolling out the red carpet for private business again, after strict Covid rules battered economy and tech regulation has hurt investor confidence. Alibaba founder Jack Ma back in China after months abroad. Apple CEO Tim Cook is in China and met with the commerce minister”
- Ross Gerber, President and CEO at Gerber Kawasaki Wealth & Investment Management: “This is what Amazon should do to unlock value and unhitch from the non profitable delivery business. $AMZN $BABA”
- Tiho Brkan, Investment Strategist: “Investors might now be given a chance to own higher-quality business segments within the Alibaba empire and give a wide berth to some of the other lower-quality segments that have been dragging the overall performance. AliCloud might be one such business segment. $BABA”
- Prashant Nair, Deputy Executive Editor at CNBC:“Alibaba stock +14% today ! What’s new: Alibaba to reorganize into 6 companies. Each company can pursue independent fundraising and IPOs when they are ready ! Remember that Alibaba is a big proxy for China consumption recovery in 2023 ! Stock trades at 10x 2023E P/E. #China”
- Eddide Du, News Junkie : “Alibaba plans to split into six units and explore fundraisings or listings for most of them, it said on Tuesday, in a major revamp as Beijing vows to ease a sweeping regulatory crackdown and support its private enterprises.”
- Paul R.La Monica, Former Correspondent at CNN: “Alibaba soaring on spinoff plans. $BABA up 9%. But investors should remember that breaking up isn’t always easy to do. Conglomerates splitting off pieces can work in short term. Smaller companies more nimble and focused. Inevitably though, there can be new urge to merge.”
