TECH - Alibaba's Market Value Plunges By $20B As Cloud Unit Spin-Off Plans Get Shelved | Benzinga
In the latest turn of events, Alibaba Group (OTC:BABAF) has put a halt to its plans to spin off its cloud segment, leading to a sharp drop in its market value by $20 billion. This development, triggered by the uncertainties surrounding U.S. export restrictions on AI chips, resulted in a 10% downturn in Alibaba’s shares listed in Hong Kong.
What Happened: As reported by Reuters, Alibaba’s sudden decision has led to the steepest single-day fall in its shares in over a year. The unforeseen move has sparked doubts among investors about potential undisclosed issues within the company, as suggested by Jon Withaar, the Singapore-based head of Asia special situations at Pictet Asset Management.
The reversal by Alibaba echoes the concerns raised by Chinese social media and gaming firm Tencent Holdings, which is also considering domestic alternatives in the wake of U.S. export restrictions.
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Why It Matters: Alibaba, once the most valuable stock in Asia, has seen ...