Alibaba share price

Akin to Alibaba (ticker: BABA) shifting from conglomerate to holding company, the move is designed to unlock shareholder value and foster market competitiveness ...

It’s a nod both to investors who have weathered years of losses for the stock—caused largely by regulatory pressures—as well as regulators who have hammered Alibaba and the rest of the Chinese tech sector over competition concerns since late 2020. [China’s largest and most important companies](https://www.barrons.com/articles/alibaba-earnings-stock-price-china-hong-kong-f5b6c817?mod=article_inline). ](https://www.barrons.com/market-data/stocks/baba)

Shares of Chinese tech giant Alibaba (BABA 14.26%) popped on Tuesday after the company announced it is splitting into six -- yes, six -- separate companies.

But the ownership structure could change for the other five as they seek investor funds. And regarding IPOs, the timing of Alibaba's announcement doesn't seem random to me. However, the company's revenue of $36 billion was up only 2% from the prior-year period.

Alibaba plans to break out units covering logistics, cloud and local services from its main ecommerce business, as the ailing Chinese tech giant carries out ...

Alibaba’s shares have lost more than 70 per cent of their value since then, leaving it with a market capitalisation of about $220 billion (€203 billion). – Copyright The Financial Times Limited 2023 Each unit has gone on to raise outside capital with several already listed in Hong Kong.

Alibaba Group Holding Ltd said it plans split its business into six main units covering e-commerce, media and the cloud, adding that each will explore ...

It may reflect a new round of development for the business and reduce worries of regulatory issues." "And it will allow the more successful of the six new companies to potentially raise finance more easily and cheaply than the parent company can as they will not be burdened by the slower, less profitable parts of the business. "It does seem something of a coincidence that this is happening just as Jack Ma seems comfortable returning. But it does inject an element of flexibility and adaptability into the company, which currently is something of a behemoth. "From Alibaba's side, the restructuring will do a lot in terms of clearing the way for it to continue growing. "This somewhat mirrors Alphabet's path, in which it also became a Holdco for a number of operations. And of course cloud business executives are better placed at responding to these requirements." "It is likely that the geopolitical risks associated with Alibaba will persist as long as the tensions between China and the U.S. "The break-up would allow Alibaba to raise external investment and grow its cloud business. After the businesses are spun off from Alibaba, the regulatory risks they face may actually decrease, rather than being subject to Jack Ma's personal risk. "As for regulation, we think it's also a positive development. "Alibaba has suffered a couple of tough years and faced slowing economic growth at home.

Alibaba's business restructuring has a lot of potential to create value for its shareholders. See why I think it's a positive development for BABA ...

The e-commerce business alone could easily be worth as much as Alibaba as a whole is worth today, and the Cloud has a lot of potential. It was the worst performing of all of Alibaba’s business units and there’s little reason to think it could turn around. [$5.92](https://seekingalpha.com/symbol/BABA/cash-flow-statement)) and discount it at 6% (the [current treasury yield](https://www.cnbc.com/quotes/US10Y) plus a 2.5% risk premium), you get a $98.6 price target. All of this assumes, of course, that Alibaba will in fact spin off shares. [BABA](https://seekingalpha.com/symbol/BABA)) ( [OTCPK:BABAF](https://seekingalpha.com/symbol/BABAF)) is about to be restructured. If BABA can simply get back to 2021 FCF levels ($10.67), then its fair value under a 0% growth assumption (I mean, 0% growth from the point when it hits $10.67 FCF onward) is above $150 using a 6% or even 7% discount rate. Before exploring Alibaba’s possible spinoff, I need to explain briefly why I’m bullish on the stock as a whole. One of the reasons BABA fell last year was because the previously-high growth company lost its growth. If you take the trailing 12 month free cash flow ("FCF") per share ( In this article, I will explore some possible outcomes for Alibaba’s breakup and why I think it’s a positive development for shareholders. Nevertheless, most BABA shareholders should realize benefits from the possible spinoff should it occur. If BABA goes ahead with splitting up into different businesses, shares will likely be spun off to current holders as happened when Brookfield Corporation (

A plan to split Alibaba Group Holding Ltd. into six units sent the company's stock soaring Tuesday while introducing a potential model for global tech ...

Analysts at J.P. Morgan expect shares in Alibaba to keep climbing after its reorganization announcement. The stock could more than double.

[split into six units and open the door to these subsidiaries going public](https://www.barrons.com/articles/alibaba-stock-price-spinoffs-china-hong-kong-12eb5e88?mod=article_inline) on their own. Set to open around $98, the stock is on a tear—though far below its peak above $300 notched in late 2020. ](https://www.barrons.com/market-data/stocks/baba)

Analysts at J.P. Morgan expect shares in Alibaba to keep climbing after its reorganization announcement. The stock could more than double.

[split into six units and open the door to these subsidiaries going public](https://www.barrons.com/articles/alibaba-stock-price-spinoffs-china-hong-kong-12eb5e88?mod=article_inline) on their own. Set to open around $98, the stock is on a tear—though far below its peak above $300 notched in late 2020. ](https://www.barrons.com/market-data/stocks/baba)

Alibaba announced that it would split its business into 6 parts which could fetch a higher price for its stand-alone business units. Read more on BABA here.

Considering the significant amount of cash-per-share Alibaba has and the excitement a pure-play Cloud IPO could bring, the risk of an investment in Alibaba is quite low, in my opinion! The beauty of a deal with Alibaba is that the Chinese e-Commerce firm is already fundamentally undervalued, absolutely speaking, but also in comparison to its Chinese e-Commerce rivals. Adjusting for cash, Alibaba has an effective P/E ratio of less than 8 X and now a major catalyst event is coming up. Alibaba is still very much undervalued, in my opinion, with a P/E ratio of 11.1 X (and this is before cash). This could weigh especially on Alibaba's core e-Commerce business which generates the majority of its revenues (close to 70 %) from the Chinese market. The big risk for Alibaba is to do nothing and just sit and wait until investor sentiment improves. Since Alibaba has a significant amount of cash per-share and already is undervalued based off of P/E, I believe the corporate announcement could lead to a significant re-rating of Alibaba's shares! As a result, Alibaba's shares may see a continual upward revaluation as investor confidence returns and investors price in the possibility of higher capital returns after Alibaba splits off certain business. Alibaba Cloud is the fourth-largest cloud provider with a market share of Alibaba's shares have languished in the last two years and the Chinese firm has been in desperate need of a major catalyst. Additionally, Alibaba has seen a severe slowdown in its growth prospects due to 3-year long brutal COVID-19 lockdown that impacted the country's manufacturing base as much as the consumer. The announcement comes in the context of major headwinds for Alibaba's valuation.

Alibaba Group Holding Limited's (NYSE: BABA) latest business restructuring sparks layoff fears among employees. March 28 reports suggested Alibaba will ...

The historic restructuring of Alibaba Group will make the tech heavyweight more agile to capture new business opportunities, gain a higher market valuation ...

Zhang will continue to serve as chairman and CEO of Alibaba, which will follow a holding company management model. Alibaba said on Wednesday it will further discuss the new organizational and governance structure on Thursday. As one of China's leading private enterprises, Alibaba is proactively seeking transformation and reinvigorating its growth, Pan said.