What's Going On With Alibaba Stock Friday?

Jack Ma co-founded Alibaba Group Holding Ltd BABA has been gradually reducing its stake in GoGoX Holdings, a logistics service provider in Hong Kong. 

Over the past two months, Alibaba has decreased its share from 12.23% to 8.89%, making billionaire Yao Jinbo, founder of 58.com, the largest shareholder with a 38.69% stake. 

This downsizing by Alibaba occurs alongside its preparations for the IPO of Cainiao Smart Logistics Network, SCMP reports. 

Alibaba's decision to divest from GoGoX is seen as a strategic move to create synergy with its services and optimize financial returns. 

GoGoX, founded as GoGoVan in 2013, became Hong Kong's first unicorn in 2017 after merging with 58 Suyun. However, it has faced losses since 2018 due to intense competition in mainland China and ongoing international expansion.

GoGoX has expanded across Asia, operating in mainland China, Singapore, South Korea, India, and Vietnam. Despite this growth, GoGoX has seen a drastic reduction in market value, losing over 90% since its Hong Kong debut in June 2022. 

The company anticipates continued losses in 2023, with a slight reduction compared to 2022. There was a significant management reshuffle in December, with Steven Lam Hoi-yuen, a co-founder, appointed the new chairman.

The Chinese e-commerce juggernaut Alibaba has been battling challenges, including domestic regulatory crackdown, internal management, organizational restructuring, and intense competition from rivals like PDD Holdings Inc PDD. Alibaba stock lost 29% last year, while PDD gained 55%.

Meanwhile, Lazada, an e-commerce subsidiary of Alibaba in Southeast Asia, implemented a wave of layoffs at its Singapore branch on January 3. The downsizing affected employees at all levels, spanning multiple departments, like commercial and marketing.

These staff reductions are part of a broader pattern of leadership shifts within Lazada and Alibaba that have been ongoing since mid-2022. Established in 2012 by Rocket Internet in Germany, Lazada aimed to replicate Amazon.com Inc's BABA model in the Southeast Asian market.

Price Action: BABA shares traded lower by 1.43% at $73.60 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Rico Shen via Wikimedia Commons