What's Going On With Alibaba Stock Tuesday

A lot has been brewing at Alibaba Group Holding Limited BABA lately. The stock has been trading lower Tuesday following reports of Alibaba naming Eddie Wu, one of the company's co-founders and current Chair of Taobao and Tmall Group, succeeding Daniel Zhang as CEO, effective September 10.

Post-transition, Zhang will continue leading the Alibaba Cloud Intelligence Group as its Chair and CEO.

Alibaba co-founder Jack Ma held a small group meeting with executives from the company's e-commerce platforms Taobao and Tmall, LatePost cited unnamed Alibaba employees.

Also Read: Alibaba's Split Sparks Layoff Concerns, CEO Zhang Authority Weakens As He Failed To Boost Share Price

Ma said the competition facing Taobao and Tmall is "very severe." He suggested that the two Alibaba e-commerce platforms cut out management layers.

Ma, who maintained a low profile since the regulatory crackdown on the company in 2020, appeared at a Saturday event co-organized by the retailer's research arm.

Ma attended the final round of the Alibaba Global Mathematics Competition held in Hangzhou and interacted with contestants and teachers, Bloomberg cites a Damo Academy online post.

In 2023, Ma joined the University of Tokyo's Tokyo College as a visiting professor. A former teacher, he has also accepted a position as an honorary professor at the University of Hong Kong. 

In March, Alibaba disclosed plans to reorganize its businesses into six independently run entities: Cloud Intelligence Group, e-commerce under Taobao-Tmall, Cainiao's smart logistics operations, Local Services group, Global Digital Business Group, and the Digital Media and Entertainment Group.

Each of the business units will have to face the tests of market forces themselves, including initial public offerings (IPOs), the company stated.

Price Action: BABA shares traded lower by 2.29% at $89.99 premarket on the last check Tuesday.