Benzinga - by Anusuya Lahiri, Benzinga Editor. Alibaba Group Holding Limited (NYSE: BABA) stock is trading lower Tuesday in line with the broader index ETFs IShares China Large-Cap ETF (NYSE: FXI) and KraneShares Trust KraneShares CSI China Internet ETF (NYSE: KWEB).
The stock recuperates from fresh macro data as property and finance sectors are triggering fear of contagion risks.
Meanwhile, reports indicate that Alibaba Cloud’s business communication and collaboration platform DingTalk will split from Alibaba Cloud as the latter will spinoff from Alibaba Group to seek an IPO.
DingTalk will not go public as part of Alibaba Cloud, and its COO Ku Wei will exit DingTalk and return to Alibaba Cloud.
DingTalk has been operating as an independent business unit led by Alibaba Cloud.
Following the move, Alibaba Cloud and DingTalk will maintain close business cooperation.
DingTalk became part of the Alibaba Cloud Intelligence Group in 2019. DingTalk’s monthly active users have remained stable at around 200 million in the past two years.
Last week, Alibaba reported first-quarter FY23 revenue growth of 14% year-on-year to $32.29 billion, beating the consensus of $31.20 billion. Non-GAAP earnings per ADS of $2.40 beat the consensus of $2.02.
Cloud Intelligence Group grew by 4% Y/Y to $3.47 billion.
Price Action: BABA shares traded lower by 1.90% at $89.95 premarket on the last check Wednesday.
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