After the recent mini-rally in BABA, continued upside will depend on US-China relations and geopolitics playing out favorably

Alibaba Group $Alibaba(BABA.US)$, a Chinese multinational conglomerate announced a significant restructuring plan a few months a. The company aims to divide its business into six independent units, including the Cloud Intelligence Group, the Taobao Tmall Commerce Group, the Local Services Group, Cainiao Smart Logistics, the Global Digital Commerce Group, and the Digital Media and Entertainment Group. Each unit will have its own CEO and board of directors, enhancing their agility to respond to market changes. The restructuring, reminiscent of Google's transformation into Alphabet, aims to unlock more value for investors. The first unit to be spun off will be the Cloud Intelligence Group, while Cainiao Smart Logistics and the Freshippo retail business are exploring IPO possibilities. However, the restructuring faces potential regulatory hurdles and depends on favorable market conditions. Expect Alibaba to stay rangebound as investors wait to see the outcome of the restructuring.