Alibaba Group Holdings (BABA:NYE) has reaffirmed the merits of its reorganisation plan, which involves dividing the corporation into six different units. Two days after announcing the reorganization plan, Alibaba hosted a conference for investors to reconfirm its commitment to the new approach. The business highlighted that it will continue to assess the performance of each division and that it may surrender ownership of any failing divisions.
Alibaba will maintain authority over the organisations and their boards despite the fact that each entity has its own CEO and Board of Directors. In recent years, Alibaba Group CEO Daniel Zhang has stressed the company’s focus on agility and becoming a more nimble and agile business.
In order to enhance its financial structure, Alibaba will also sell fewer strategic stakes and maintain its permitted $25 billion share buyback program. The reorganization plan has been greeted favorably by analysts, who have assigned BABA stock a Strong Buy consensus rating for the foreseeable future. The 30th of March saw a 3% increase in Alibaba’s share price on the Hong Kong exchange following the investor meeting.
