Alibaba (BABA) made an announcement on Sunday regarding the departure of former CEO and chairman Daniel Zhang from his role as the head of Alibaba’s cloud business. This indicates a more sudden transition for the Chinese internet giant. In response to this news, BABA stock experienced a modest decline during early Hong Kong trading.
To fill the void left by Zhang, Eddie Wu, a co-founder of Alibaba, has taken on the role of acting head of the cloud unit. Wu has also officially succeeded Zhang as Alibaba Group CEO. Additionally, Joe Tsai, owner of the Brooklyn Nets, has become the new chairman of Alibaba.
In June, Zhang had previously stated his intention to step down as the overall head of the company, but it was expected that he would continue leading the cloud unit in the long term. The cloud unit is just one part of a larger organization that operates with several independent Alibaba units. There are plans for the cloud unit to seek its own public listing.
Last week, Alibaba’s U.S. shares experienced a 5.2% decrease, dropping below the 50-day and 200-day lines. For more updates on the stock market and other news, please follow Ed Carson on X/Twitter at @IBD_ECarson.
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