The shares of Alibaba Group Holding Limited (BABA) got a leg up after Jack Ma, the company’s founder, commended its restructuring efforts of the past year.
Jack Ma Statement Boosts Alibaba Shares
CNBC reported that this public address to Alibaba employees was the second in recent months.
In an attempt to restore the Chinese technology mammoth to its former glory, the company made unprecedented organisational changes. In an internal memorandum to the firm’s employees, Ma reportedly wrote:
Over the past year, amid external and internal doubt and pressures, I have witnessed the birth of a strong and courageous Alibaba team.
The statement is unusual since Ma stepped back from public life in 2020 after financial watchdogs stopped the IPO of his Ant Group, which consequently triggered a clampdown on the rest of his business domain. During morning trading on Wednesday, 10 April 2024, the organisation’s US-listed shares climbed by almost 2% after the contents of the communique became known.
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With its technology-driven operational structures, Alibaba manages everything from e-commerce to online computing. It lost billions because of regulatory scrutiny, and the competition from companies such as ByteDance, the TikTok owner, and PDD Holdings Inc. (PDD) increased.
In 2023, Alibaba saw its most rigorous restructuring to date. The company was divided into six segments to improve growth and market agility. There were also some significant changes in the top echelons as CEO Daniel Zhang suddenly resigned, and Eddie Yongming Wu took the wheel.
Alibaba closed its trading on Wednesday with more than 2% in the green. Its current market cap is just over $186bn.
