BABA stock

In a groundbreaking move, Alibaba will split into six different companies that will operate independently and can launch IPOs. BABA stock jumped.

Start With These 3 Steps](https://www.investors.com/research/how-to-invest-in-the-stock-market-start-with-a-simple-routine/) Alibaba and Tencent invested in hundreds of startups over the years, often helping to craft strategy as they grew. The crackdown has affected China internet companies, holding back Alibaba and others. JD climbed 4.5% to 41.55. [JD](https://research.investors.com/quote.aspx?symbol=JD)), Tencent Holdings ( [TCEHY](https://research.investors.com/quote.aspx?symbol=TCEHY)) and PDD Holdings ( [PD](https://research.investors.com/quote.aspx?symbol=PD)). They'll also cover digital marketplaces, e-commerce and the cloud. Zhang will also head up the cloud intelligence division. The government had criticized the influence of the largest online platforms, particularly Alibaba and Tencent. [Best China Stocks To Buy And Watch](https://www.investors.com/news/best-chinese-stocks-to-buy-and-watch/) [China's JD.com Beats Quarterly Sales, Earnings Targets Despite Covid Restraints](https://investors.com/news/technology/jd-stock-china-ecommerce-firm-beats-q4-goals/) [Alibaba Fights Through Multiple Obstacles To Report Quarterly Earnings Beat](https://investors.com/news/technology/baba-stock-jumps-on-earnings-beat/) [Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists](https://www.investors.com/stock-lists/best-growth-stocks-buy-watch-ibd-stock-lists/) [Looking For The Next Big Stock Market Winners? [@IBD_BDeagon](https://twitter.com/IBD_BDeagon) for more on tech stocks, analysis and financial markets. [stock market today](https://www.investors.com/market-trend/stock-market-today/stock-market-today-market-trends-best-stocks-buy-watch/). [in its news release](https://www.alizila.com/alibaba-reorganizes-to-unlock-value/).

Alibaba's business restructuring has a lot of potential to create value for its shareholders. See why I think it's a positive development for BABA ...

The e-commerce business alone could easily be worth as much as Alibaba as a whole is worth today, and the Cloud has a lot of potential. It was the worst performing of all of Alibaba’s business units and there’s little reason to think it could turn around. [$5.92](https://seekingalpha.com/symbol/BABA/cash-flow-statement)) and discount it at 6% (the [current treasury yield](https://www.cnbc.com/quotes/US10Y) plus a 2.5% risk premium), you get a $98.6 price target. All of this assumes, of course, that Alibaba will in fact spin off shares. [BABA](https://seekingalpha.com/symbol/BABA)) ( [OTCPK:BABAF](https://seekingalpha.com/symbol/BABAF)) is about to be restructured. If BABA can simply get back to 2021 FCF levels ($10.67), then its fair value under a 0% growth assumption (I mean, 0% growth from the point when it hits $10.67 FCF onward) is above $150 using a 6% or even 7% discount rate. Before exploring Alibaba’s possible spinoff, I need to explain briefly why I’m bullish on the stock as a whole. One of the reasons BABA fell last year was because the previously-high growth company lost its growth. If you take the trailing 12 month free cash flow ("FCF") per share ( In this article, I will explore some possible outcomes for Alibaba’s breakup and why I think it’s a positive development for shareholders. Nevertheless, most BABA shareholders should realize benefits from the possible spinoff should it occur. If BABA goes ahead with splitting up into different businesses, shares will likely be spun off to current holders as happened when Brookfield Corporation (

Alibaba (BABA) stock is on the rise Tuesday after the company revealed plans to split up into six businesses and become a holding company.

[Publishing Guidelines](https://investorplace.com/corporate/investorplace-publishing-guidelines/). On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. [acting as a holding company](https://finance.yahoo.com/news/factbox-alibabas-six-business-units-120726429.html). [Cloud](https://investorplace.com/industries/technology/cloud/), [E-Commerce](https://investorplace.com/industries/consumer-discretionary/retail/e-commerce/), [Consumer Staples](https://investorplace.com/industries/consumer-staples/), [Food](https://investorplace.com/industries/consumer-staples/food/), [Communications](https://investorplace.com/industries/communications/), [Media](https://investorplace.com/industries/communications/media/), [Consumer Discretionary](https://investorplace.com/industries/consumer-discretionary/), [Retail](https://investorplace.com/industries/consumer-discretionary/retail/), [Technology](https://investorplace.com/industries/technology/) While China tech spinoffs are not uncommon, the move looks to be more encompassing, including core businesses, that may serve as a blueprint for the industry going forward.” [Why Is WiSA Technologies (WISA) Stock Down 22% Today?](https://investorplace.com/2023/03/why-is-wisa-technologies-wisa-stock-down-22-today/) [Pinterest Layoffs 2023: What to Know About the Latest PINS Job Cuts](https://investorplace.com/2023/03/pinterest-layoffs-2023-what-to-know-about-the-latest-pins-job-cuts-2/) [Why Is Monopar Therapeutics (MNPR) Stock Down 47% Today?](https://investorplace.com/2023/03/why-is-monopar-therapeutics-mnpr-stock-down-47-today/)