Two days after announcing that Chinese e-commerce giant Alibaba Group Holdings (NYSE:BABA) will split into six units, the company held an investor conference to reaffirm the benefits of the same. To start with, Alibaba said that it will continue to monitor the performance of the six units post-listing and may give up control of those that seem undesirable. Shares of Alibaba rose 3% on the Hong Kong exchange on March 30, following the call.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
While each unit will have its own CEO and Board of Directors, Alibaba will continue to have control over the entities and their boards. Alibaba Group’s CEO Daniel Zhang said, “We’ve been stressing the idea of agility and being a more nimble and agile organization for several years now.”
The Group will continue to sell off less strategic investments to improve its capital structure, as well as carry on with the already authorized $25 billion share buyback program. Analysts remain highly bullish about Alibaba’s stock trajectory going forward and have awarded the stock a Strong Buy consensus rating.
