Top Stock Highlights of the Week – Alibaba

Alibaba surprised the market last week when it announced that the company will be split into six units that will individually raise funds and explore separate IPOs.

This split may also address the Chinese government’s push to decentralise Alibaba’s business lines and decision-making power.

Jack Ma, Alibaba’s billionaire co-founder, also returned to China after spending more than a year abroad.

The six divisions that will be formed as part of the overhaul include cloud intelligence, global digital, Taobao Tmall online shopping, local services such as meal delivery, Cainiao logistics, and digital entertainment media & entertainment.

Despite this abrupt shift, Alibaba remains focused on cost-cutting to improve its bottom line.

Previously, the technology giant had spent aggressively to take market share in various sectors as it chased rapid growth.

The coming months should be interesting as the split flows through the organisation as investors await further details from Alibaba.