|Day's range||93.80 - 93.80|
Stocks extend gains Thursday morning after a strong showing on Wednesday.
Alibaba's (NYSE: BABA) stock surged 14% on March 28 after the Chinese e-commerce and tech giant announced that it would split its business into six new groups: Cloud Intelligence, Taobao Tmall Commerce, Local Services, Cainiao Smart Logistics, Global Digital Commerce, and the Digital Media and Entertainment Group. All six groups will be led by separate CEOs, and most of them will pursue fresh funding from external investors or public stock listings. In a letter to his employees, Alibaba CEO Daniel Zhang said the restructuring would enable the company to become "more agile, shorten decision-making links, and respond faster" to all the changes in the market.
Alibaba's six-way breakup plan has raised questions about the long-term shape of its profitable cloud unit, given that it will have to tackle heavy regulatory scrutiny at a time when competition is intensifying both in China and abroad. While a split into a standalone unit will give investors a chance to make focused bets on a business estimated by analysts to be worth between $41 billion and $60 billion, the step could put Alibaba's cloud unit even more in the cross-hairs of Chinese and overseas regulators, likely slowing its growth. Some analysts said external investment and separation from Alibaba's core ecommerce business could help it grow overseas, where it is far behind rivals such as Amazon Web Services.