Alibaba's Market Value Plunges By $20B As Cloud Unit Spin-Off Plans Get Shelved
Portfolio Pulse from Benzinga Neuro
Alibaba Group's (OTC:BABAF) market value dropped by $20 billion after halting plans to spin off its cloud segment due to U.S. export restrictions on AI chips. This caused a 10% decline in its Hong Kong-listed shares, the largest in over a year. Investors are concerned about potential undisclosed issues within Alibaba, as the decision follows similar concerns from Tencent Holdings regarding U.S. export restrictions. Alibaba's market value has significantly decreased since October 2020, affected by regulatory crackdowns, economic slowdown, and internal challenges. Despite this, Alibaba is committed to growing its cloud business and investing in AI, with a strategic review to differentiate core and non-core businesses.
November 17, 2023 | 11:07 am
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Alibaba Group's decision to halt the spin-off of its cloud segment due to U.S. export restrictions has led to a $20 billion decrease in market value and a 10% share price drop. This reflects investor concerns over potential undisclosed internal issues and broader regulatory challenges.
The direct mention of Alibaba's market value decline and the halting of its cloud segment spin-off, coupled with the significant share price drop, indicates a strong negative impact on the stock. The market's reaction to regulatory uncertainties and potential internal issues suggests a bearish outlook in the short term.
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