Alibaba's Cloud Business Spinoff - What's Going On With Alibaba Stock Friday
Portfolio Pulse from Anusuya Lahiri
Alibaba plans to fully spin out its $12 billion cloud business, which analysts value at over $30 billion. The cloud division has been losing market share to rivals amid China's tech sector crackdown. Analysts have mixed opinions on the move, with some lowering their price targets for Alibaba stock.
May 19, 2023 | 1:29 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Alibaba's decision to spin out its cloud business has led to lowered price targets by analysts, potentially impacting the stock price in the short term.
The decision to spin out Alibaba's cloud business has raised questions about market and political pressures. Analysts have lowered their price targets for Alibaba stock, which could lead to a negative impact on the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Alibaba's cloud business has been compared to Amazon's successful cloud unit, Amazon Web Services, but the spinoff is not expected to have a direct impact on Amazon.
Although Alibaba's cloud business has been compared to Amazon Web Services, the spinoff is not expected to have a direct impact on Amazon as they operate in different markets and face different regulatory environments.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20
NEUTRAL IMPACT
Alibaba's cloud business has outperformed rival offerings from Baidu, but the spinoff is not expected to have a direct impact on Baidu.
Although Alibaba's cloud business has outperformed rival offerings from Baidu, the spinoff is not expected to have a direct impact on Baidu as they operate in different markets and face different regulatory environments.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20
NEUTRAL IMPACT
Alibaba's cloud business has outperformed rival offerings from Tencent, but the spinoff is not expected to have a direct impact on Tencent.
Although Alibaba's cloud business has outperformed rival offerings from Tencent, the spinoff is not expected to have a direct impact on Tencent as they operate in different markets and face different regulatory environments.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20