Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
Shares of Alibaba Group is sliding 3.5% in Hong Kong to hit a low of HK$86.85 after the company surprised the market by announcing Daniel Zhang’s step-down from its cloud unit.
Zhang will step down from Alibaba’s cloud business, in a surprise move just two months after the company said he would leave his roles as group CEO and chairman to focus on the cloud unit.
Zhang had been scheduled to hand over the role of group CEO to Eddie Wu on Sunda and the latest announcement said that Wu will also take charge of the cloud business after Zhang’s departure. Read more …
Such managerial shuffles might surprise the market and investors were anticipated to focus on any further announcements and clarifications from the new management, so as to form a better understanding of the group’s latest organizational strategies and capital market plans for each business segment, Goldman Sachs said in a note on Monday.
Goldman Sachs remained upbeat on Alibaba’s pledge on realizing growth re-acceleration for Taobao Tmall, as well as the group’s potential in unlocking growth-driving force in cloud and international businesses.
Alibaba’s development focus on sustainable increase of shareholder returns was likewise favored, the broker said. Goldman Sachs rated the stock at Buy and included it in the Conviction Buy list, with a target price of HK$134.
