Alibaba (NYSE:BABA) gained in pre-market trading after the company’s founder, Jack Ma, finally emerged from the shadows. In a lengthy memo to its employees, Ma expressed support for the Chinese e-commerce giant’s restructuring efforts.
Last year, Alibaba announced that it would split its business into six different groups. This includes the Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group.
In his memo, Ma praised CEO Eddie Wu and Chairman Joe Tsai’s leadership, and added that the company’s split into six divisions will improve decision-making and make BABA more agile and customer-focused.
Moreover, the company’s founder, and former CEO, added that over the past year, he has seen the emergence of a strong and courageous Alibaba team as it has battled many pressures internally and externally.
Ma currently owns around 4% of Alibaba.
Is Alibaba a Buy, Sell or Hold?
Analysts remain bullish about BABA stock, with a Strong Buy consensus rating based on 15 Buys and three Holds. Over the past year, BABA has declined by more than 25%, and the average BABA price target of $104.66 implies an upside potential of 43.4% at current levels.
