Alibaba (NYSE:BABA) stock is in the news Monday as investors react to news of Daniel Zhang stepping down as the company’s cloud division leader.
Investors will note that Zhang’s departure from Alibaba comes after he gave up the Chairman and CEO positions at the company. Joseph Tsai and Eddie Wu took over these roles at Alibaba.
Alibaba brought in the new executives as part of its restructuring plan that will see it split into multiple different companies. Experts were initially expecting Zhang to stick around as the leader of the company’s cloud division before today’s announcement.
Ronald Keung, a Goldman Sachs analyst, said the following about Zhang’s departure from Alibaba:
“The cloud business leadership change announcement may come as a surprise to the market […] Investors will be focused on any further clarity/updates from the new management team on Alibaba Group’s latest organizational strategies and capital market plans of its respective subsidiaries.”
What This Means for BABA Stock
Some investors are likely viewing today’s departure news as the restructuring not going as well as planned. That comes with diminishing morale and confidence in the Chinese e-commerce giant. As such, it makes sense that shares of BABA stock are slipping lower today.
BABA stock is down 1.2% as of Monday morning with some 3.7 million shares traded. Its daily average trading volume is around 18 million shares.
Investors seeking out even more of the most recent stock market news will want to keep reading!
We have all of the biggest stock market stories that traders need to know about on Monday! A few examples include why shares of J.M. Smucker (NYSE:SJM), Nuwellis (NASDAQ:NUWE) and Tenon Medical (NASDAQ:TNON) stock are moving today. All of that news is ready to go at the links below!
More Monday Stock Market News
- SJM Stock Alert: The $5.6 Billion Reason J.M. Smucker Is Down Today
- Why Is Nuwellis (NUWE) Stock Down Today?
- Why Is Tenon Medical (TNON) Stock Down 30% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
