Alibaba (BABA) announced Sunday that former CEO and chairman Daniel Zhang will also exit as the head of Alibaba’s cloud business, signaling a more-abrupt transition for the Chinese internet giant.
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BABA stock fell modestly in early Hong Kong trading.
Eddie Wu, an Alibaba co-founder, is now acting head of the cloud unit. Wu also officially succeeded Zhang as Alibaba Group CEO. Brooklyn Nets owner Joe Tsai took over as chairman.
Zheng announced in June that he would step down as head of the overall company, but he was expected to lead the cloud unit long term. That’s part of a major organization with several Alibaba units run independently. The cloud unit is expected to seek a public listing of its own.
Alibaba’s U.S. shares fell 5.2% last week to 90.05, dropping below the 50-day and 200-day lines.
Please follow Ed Carson on X/Twitter at @IBD_ECarson for stock market updates and more.
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