Alibaba Group Holding Limited BABA stock is trading lower. Wednesday, amid reports of the company's cloud unit losing another senior executive, it struggled to contemplate its future after canning a spinoff and IPO.
Chief Commercial Officer Cai Yinghua departed for undisclosed reasons. The exit coincided with an internal reshuffle, Bloomberg cites familiar sources.
In November, the e-commerce juggernaut co-founder Jack Ma shared plans to shelve the $11 billion business IPO at a time when investors are already concerned about slowing topline growth at a firm that once drove the broader company and underpins Alibaba's AI initiatives.
Shortly after, the company initiated a leadership revamp within the unit, appointing three new executives to lead key business segments.
These appointments herald a more extensive restructuring designed to rejuvenate a prominent Chinese entity that experienced a slowdown amidst a broader crackdown on the tech sector.
Alibaba, formerly a powerhouse in online retail and various other domains, is now facing a downturn. This decline comes in the wake of several challenges, such as a change in leadership, difficulties in implementing a restructuring plan, and a regulatory crackdown by Beijing authorities.
Recently, PDD Holdings Inc PDD surpassed Alibaba, claiming the title of China's most valuable online retailer.
Contributing to Alibaba's challenges is its struggle to adapt to evolving consumer trends in China, where shoppers are increasingly turning to social media platforms and reducing their expenditures.
Alibaba stock has lost over 22% year-to-date.
Price Action: BABA shares traded lower by 0.62% at $70.95 premarket on the last check Wednesday.
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