Alibaba Group Holding Ltd ADR (BABA)

Alibaba Group Holding Stock (BABA) dropped by 9.14% from $87.07 to $79.11 in the trading on Thursday November 16, 2023. The reasons why BABA stock down today include:

• In-line earnings results: Alibaba's revenue increased 9% to $30.8 billion in the September quarter, meeting analyst expectations. However, this growth rate represents a slowdown from 14% in the June quarter. Adjusted earnings per American depositary share (ADS) rose 21% to $2.14, beating expectations of $2.11.
• Cancelation plans to spin off cloud unit : It is due to uncertainties related to U.S. chip restrictions. The update on the cloud business is clearly a disappointment. After its core e-commerce business, which includes Taobao and Tmall, the cloud group is its biggest business segment, both by revenue and profits, so it was seen as the most valuable asset in the spinoff plan

BABA shares dropped 4.6% to $87.83 after it announced Eddie Wu will succed Dinel Zhang as its chief executive officer effective Sept. 10. Joe Tsai will take Zhang's place as the group's chairman.

https://twitter.com/MarketCurrents/status/1671247010505310208

BABA's stock fell related to news the company's cloud computing business is laying off workers. Bloomberg reported that Alibaba will lay off 7% of the employees at its cloud computing division before spinning this division off and IPO'ing it.

https://www.fool.com/investing/2023/05/23/why-alibaba-stock-ticked-lower-today/