Why Alibaba Stock Slumped by Almost 3% Today
Monster Chinese tech company Alibaba Group (NYSE: BABA) is shifting a business unit, and investors aren't necessarily happy about it. On news of the apparently looming move, the market punished Alibaba by sending its U.S.-listed shares down by almost 3% in price on Wednesday. That was a steeper decline than the 0.8% posted by the S 500 index.
Very early that morning, Reuters reported that Alibaba plans to separate its DingTalk office communication platform from the company's cloud division. This was according to two sources close to the company, who said that DingTalk would become a fully owned Alibaba subsidiary instead of operating under the umbrella of the cloud intelligence business group. Its services would not be impacted by the move, they added.
DingTalk is an online platform somewhat reminiscent of the highly popular Slack, currently owned and operated by U.S. customer relationship management (CRM) specialist Salesforce.
Source Fool.com
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