Why Alibaba Stock Was Up on Friday
Shares of Alibaba Group (NYSE: BABA) were up 4.8% as of 11:21 a.m. ET on Friday. The stock was moving higher on a Bloomberg report that the tech giant could file an initial public offering (IPO) in Hong Kong for its Cainiao logistics business as early as next week. Alibaba is reportedly hoping to raise $1 billion in the share sale.
Alibaba stock is 73% off its previous highs. Weak revenue performance across its commerce marketplaces and cloud unit have weighed on the stock's performance. The company has experienced setbacks over the last year from slowing economic growth and closer government scrutiny on the tech sector.
In March, Alibaba said it was planning to split itself up into six business units. This would include separate business groups for cloud services, commerce, logistics services, and media segments. These moves are intended to place a brighter spotlight on the value of the tech giant's sprawling business and therefore lift the share price.
Source Fool.com
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